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2024 (6) TMI 292 - HC - VAT and Sales TaxChallenge to assessment order - failure to file returns and levy of tax and penalty - jurisdiction to pass the order - Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 - HELD THAT - From sub-section (5) to Section 8 of the Entry Tax Act, it would be clear that any assessment ought to be made within 3 years from the last date prescribed for filing of returns of the particular period. Rule 3(2) of the Tamil Nadu Tax on Entry of Goods into Local Areas Rules, 2001, provides that if the importer is a dealer in motor vehicles, the importer ought to file its return on a monthly basis on or before 20th of the succeeding month while an importer other than a dealer in motor vehicles, shall file quarterly returns on or before last day of the month immediately succeeding the quarter. The impugned assessment relates to the Assessment Year 2010-11. Thus, the assessment ought to have been made within 3 years from the last date prescribed for filing of returns i.e., 30.06.2014 inasmuch as the respondent is not a dealer in motor vehicles. However, the notice for assessment was issued only on 29.09.2015 and the impugned order of assessment was made on 07.07.2016 which is beyond the period prescribed for original assessment in terms of Section 8(5) of the Entry Tax Act and thus, beyond the limitation stipulated under Section 8(5) of the Entry Tax Act and hence, barred by limitation. The impuged order of assessment being without jurisdiction, is liable to be set aside - appeal dismissed.
Issues Involved:
Challenge to the order of assessment u/s Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 for failure to file returns and levy of tax and penalty. Issue 1: Jurisdiction of assessing authority The respondent imported a JCB vehicle from Pune into Tamil Nadu and was assessed under the Entry Tax Act. The respondent challenged the assessment order, arguing that there is no provision to assess an importer who failed to furnish returns u/s 7 of the Act. The Court referred to previous judgments and held that the assessing authority cannot assess an importer who failed to file returns, as there is no specific provision in the Act for such assessment. The Court emphasized that taxation statutes must be interpreted based on plain and unambiguous language, and without a provision enabling the tax collector to levy tax, it is impermissible to do so. The Court found the impugned assessment order to be without jurisdiction and set it aside. Issue 2: Limitation for assessment The Revenue challenged the order of the learned Judge, arguing that the Division Bench judgment and previous orders cited were inapplicable to the present case. The respondent failed to file monthly returns as required by the Entry Tax Act, and pre-assessment notices were issued based on information from the Commercial Taxes Department. The respondent contended that the assessment order was an original assessment u/s 8 of the Act and thus subject to the limitation of 3 years from the last date prescribed for filing returns. The Court noted that the assessment related to the year 2010-11 and should have been made by June 30, 2014, within the 3-year limitation period. However, the assessment order was issued in July 2016, beyond the prescribed period, making it barred by limitation. The Court dismissed the Writ Appeal, upholding the decision of the learned Judge to set aside the assessment order.
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