2014 (2) TMI 1134 - HC - VAT and Sales Tax

Disallowance of ITC - Objection not filed within time - Held that - Objection were not made due to misplacement of notice - considering the plea made by the petitioner to give him an opportunity to file objections to the demand notice dated 25.10.2013 and the reasons assigned by him for not filing the same, the petitioner is directed to file his objections to the demand notice dated 25.10.2013 within a period of two (2) weeks from the date of receipt of a copy of this order. On such objections being made, the respondent shall consider the same in accordance with law after affording an opportunity of personal hearing to the petitioner and on verification of documents, pass appropriate orders within a period of four (4) weeks. Till such time, status quo of the impugned proceedings shall be maintained - Decided in favour of assessee.

Summary

Issues:
Challenging revised assessment orders for multiple assessment years due to disallowed Input Tax Credit (ITC) claim based on failure to produce relevant documents within the specified time frame.

Analysis:
The petitioner, a registered dealer under TNVAT and CST Act, sought to quash revised assessment orders for the years 2006-07 to 2010-11 due to the disallowance of ITC claim by the respondent. The disallowance was based on the petitioner's failure to produce relevant documents to substantiate the claim during an inspection by Enforcement Wing Officials. The respondent issued a notice proposing to disallow the ITC claimed, giving the petitioner 15 days to file objections. However, the petitioner failed to file objections within the specified time frame due to preparations for his daughter's marriage.

The petitioner argued that compelling reasons related to his daughter's marriage prevented him from filing objections within the prescribed time, and requested an opportunity to establish his right. On the contrary, the Government Advocate (Tax) contended that no reply or objections were filed by the petitioner even after the notice was issued, justifying the validity of the impugned order.

The impugned orders passed by the respondent cited the assessment was conducted as per a Government Order and highlighted the petitioner's failure to reply to the notice dated 25.10.2013. The petitioner's plea centered around the inability to file objections due to his daughter's marriage, seeking a further opportunity for a hearing to address the demand notice.

The Court directed the petitioner to file objections to the demand notice within two weeks, considering the reasons provided for the delay. The respondent was instructed to review the objections, provide a personal hearing to the petitioner, and pass appropriate orders within four weeks. The Court maintained the status quo of the proceedings until the review was completed, disposing of the Writ Petitions without costs and closing the connected matters.