2022 (10) TMI 918 - HC - VAT and Sales Tax

Revision of order of assessment - Section 34 of the Tamil Nadu General Sales Tax Act, 1959 - HELD THAT - The order was sought to be revised under Section 34 of the Act by the first respondent, by issuing a notice dated 10.02.1998. By the impugned order, the order of the Appellate Commissioner was revised by holding that the petitioner had subsequently accounted the transactions and modified the accounts and therefore, there was a case for imposing penalty and also restoring the order of the original authority. There are no reason to sustain the impugned order - This writ petition is allowed.

Summary

Issues:
Challenge to order passed by Joint Commissioner under Section 34 of Tamil Nadu General Sales Tax Act, 1959.

Analysis:
1. The petitioner challenged the order passed by the Joint Commissioner (CT)-III, Chennai, seeking to revise the assessment order modified by the Appellate Assistant Commissioner. The main contention was regarding the addition and estimation based on entries in a student note book and a purchase bill not accounted for. However, it was argued that the entries in the student note book were found accounted for in the regular day book produced before inspecting officials, indicating no omissions or unaccounted transactions. The court analyzed the entries in detail and concluded that the estimation based on the entries in the student note book and the equal addition for probable omissions were ordered to be deleted.

2. The order sought to be revised under Section 34 of the Act by the Joint Commissioner was based on the petitioner subsequently accounting for the transactions and modifying the accounts, leading to a case for imposing penalty and restoring the order of the original authority. The court examined the revision order and held that the factual findings indicated that the defects noticed during inspection were subsequently brought into accounts and properly explained. Citing a previous Division Bench decision, the court emphasized that once the deficits found during inspection were brought into accounts, the claim for actual suppressions could not be sustained. Therefore, the court found no need to interfere with the formula adopted by the Appellate Authority and Tribunal, leading to the quashing of the impugned order.

3. The petitioner relied on a Division Bench decision in the case of State of Tamil Nadu vs. Tvl.Gomraj Metal Wares, Madras, while the respondent cited a different Division Bench decision in M/s.Vijay Steels, Chennai vs. The State of Tamil Nadu. The court considered the content of the Tvl.Gomraj Metal Wares case and found it covered the issue at hand, leading to the decision to quash the impugned order and allow the writ petition. Consequently, the impugned proceedings of the Joint Commissioner were quashed, and the writ petition was allowed without any costs.