2022 (1) TMI 1010 - HC - VAT and Sales Tax

Classification of goods sold - packing materials - taxable at 5% under Sl.No.13-A(v), Part-C, First Schedule of the TNVAT Act, 2006 or taxable at 14.5% by treating the petitioner having sold pre-recorded/recorded DVDs and CDs. - HELD THAT - The petitioner has already opted to resolve the dispute arising out of the impugned Assessment Orders dated 27.09.2019 for the Assessment Years 2016-2017 under the TNVAT Act, 2006 and the order passed by the respondent for the same Assessment Year 2016-2017 under the CST Act, 1959 on 31.03.2021 under Section 84 of the TNVAT Act, 2006 as made applicable for both enactments. As such, there is no merits in the present writ petitions - It is also noticed that the petitioner had failed to respond to the notice dated 31.07.2019 issued by the respondent asking the petitioner to file objection before the respondent. Therefore, these writ petitions are liable to be dismissed. Since the petitioner's petitions under Section 84 of the TNVAT Act, 2006 are pending before the respondent, while dismissing these Writ Petitions, the respondent is directed to pass appropriate orders on the objections filed under Section 84 of the TNVAT Act, 2006 within a period of six weeks from the date of receipt of a copy of this order - petition disposed off.

Summary

Issues:
Challenge to Assessment Orders under TNVAT Act, 2006 and CST Act, 1956. Delay in disposal of petitioner's objections under Section 84 of TNVAT Act. Disputed classification of goods sold by petitioner. Contradiction with entries in First Schedule to TNVAT Act. Belated approach to the Court. Non-production of C-Forms.

Analysis:
The petitioner contested Assessment Orders dated 27.09.2019 under TNVAT Act, 2006 and 31.03.2021 under CST Act, 1956. Alleged delay in disposal of objections filed under Section 84 of TNVAT Act, 2006 by the respondent. Petitioner claimed to have sent reminders on 05.07.2021 and 20.10.2021, highlighting the respondent's notice dated 31.05.2019 regarding tax liability on sale of DVDs and CDs, despite being a packing materials seller taxed at 5%. Petitioner argued that impugned orders did not align with TNVAT Act, 2006 entries, contending a tax imposition discrepancy.

The respondent, represented by the Additional Government Pleader, opposed the challenge citing belated court approach and disputed factual issues on goods classification and duty rate adjudication. The respondent noted the petitioner's Section 84 petitions for order rectification, emphasizing the petitioner's responsibility to address C-Form non-production, citing a precedent. The court heard arguments from both parties and observed the petitioner's resolution attempt under Section 84 of TNVAT Act, 2006 for the disputed Assessment Orders. The court found no merit in the writ petitions, emphasizing factual disputes on goods sold by the petitioner and the petitioner's failure to respond to the respondent's notice, leading to dismissal of the petitions.

While dismissing the writ petitions, the court directed the respondent to address the objections filed under Section 84 of TNVAT Act, 2006 within six weeks. The judgment concluded by disposing of the writ petitions with no costs and closing the connected Miscellaneous Petitions.