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2021 (11) TMI 827 - HC - VAT and Sales TaxValidity of assessment orders - returns submitted for the Assessment Years 2006-2007 to 2010-2011 for which no assessment orders have been passed shall be deemed to have been assessed on 30.06.2012 - proviso to Section 22(2) of the TNVAT Act - HELD THAT - The amendment to Section 22(2) of the TNVAT Act, 2006 in the year 2012, if no Assessment Orders were passed for the Assessment Years 2006-2007 to 2010-2011, assessment is deemed to have been completed on 30.06.2012. Since the assessment is deemed to have been completed on 30.06.2012, the avenue to revise the assessment is only under Section 27 of the TNVAT Act, 2006 from the aforesaid date. The arguments advanced by the learned counsel for the petitioner is acceptable in view of the fact that no other proceedings were pending at the instance of the petitioner so as to exclude the time under terms of Section 27(6), 27(7) and 27(8) of TNVAT Act, 2006. The impugned notices are to be declared as time barred and therefore liable to be quashed and are accordingly quashed subject to the rider that the petitioner had filed a complete return for the respective year along with the declaration and document for completing the assessment to invoke Section 27 of the TNVAT Act, 2006 - Petition allowed.
Issues:
Challenge to impugned notices under TNVAT Act, 2006 for Assessment Years 2007-2008, 2008-2009, and 2009-2010 based on an amendment to Section 22(2) of the Act in 2012. Analysis: The petitioner filed writ petitions to quash notices issued by the respondent under TNVAT Act, 2006 for specific Assessment Years. The petitioner relied on an instruction from the Commissioner of Commercial Taxes regarding the issuance of notices in cases barred by limitation. The petitioner argued that no proceedings were initiated to exclude time under Section 27(6), 27(7), and 27(8) of the TNVAT Act, 2006. The respondent contended that the petitioner, engaged in selling Bakery Products under a specific brand name, was liable to pay tax at 12.5% for a specific period, leading to the issuance of the revision notice. The respondent also referenced a pending issue in another case before the Court to support their stance. The Court examined the relevant provisions of the TNVAT Act, 2006, particularly the amendment to Section 22(2) in 2012, which deemed assessment completed on a specific date for certain Assessment Years. The Court noted that the avenue for revising assessment post the deemed completion date was under Section 27 of the Act, which also excluded specific periods for limitation calculation. The Court accepted the petitioner's argument that no other proceedings were pending to exclude time under the Act's provisions. It emphasized that the Department should have issued the notice within the prescribed period as per the Act. Consequently, the Court declared the impugned notices as time-barred and quashed them, subject to the condition that the petitioner had filed complete returns for the respective years as required by Section 27 of the TNVAT Act, 2006. In conclusion, the writ petitions were allowed, and no costs were awarded in the matter.
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