2016 (10) TMI 261 - HC - VAT and Sales Tax

Validity of order of Revised assessment - valuation - cash discount - sales return - whether the respondents were justified in refusing to consider the issue of cash discount and sales return, as there was no specific direction to the said effect in the earlier writ petition - Held that - the Assessing Authority, being a statutory authority, have the power to redo the assessment, moreso, when the Court directed to redo the matter. Thus, if the petitioner has made a statement with regard to the sales return and cash discount and produced the necessary documents, it is always open to the assessing officer to take into consideration those documents and take a decision in the matter. The respondent need not restrict himself only with regard to the C-Forms and F-Forms and if the petitioner is legally entitled for any other relief then that may be considered. Respondent directed to redo the assessment on the issues of Sales Return, Cash Discount and return of stock transferred goods, after affording an opportunity of personal hearing to the petitioner - petition allowed.

Summary

Issues:
1. Assessment under the CST for the year 2013-14
2. Refusal to accept C-Forms and F-Forms for redoing assessment
3. Challenge to assessment order in writ petition
4. Consideration of sales return and cash discounts in revised assessment

Assessment under the CST for the year 2013-14:
The petitioner, a manufacturer and dealer of Aluminum Radiators, Inter Coolers, and Oil Coolers, was registered under the TNVAT Act and CST Act. The assessment for the year 2013-14 was completed, covering turnover assessed at different rates based on C-Forms and F-Forms. The assessment order also demanded tax for defective C-Forms.

Refusal to accept C-Forms and F-Forms for redoing assessment:
After receiving C-Forms and F-Forms, the petitioner requested the respondent to accept them for redoing the assessment, but this request was refused. The petitioner challenged this refusal through a writ petition, which was allowed, setting aside the initial assessment order and remanding the case for fresh consideration.

Challenge to assessment order in writ petition:
Upon remand, the respondent accepted the C-Forms but refused to consider sales return and cash discounts, citing the lack of specific direction in the earlier writ petition. The court clarified that the Assessing Authority had the power to redo the assessment, especially when directed by the court. The petitioner's submission of sales return and cash discount details should be considered by the assessing officer, along with C-Forms and F-Forms, for a comprehensive assessment.

Consideration of sales return and cash discounts in revised assessment:
The court allowed the writ petition, setting aside the rejection of the petitioner's claims regarding sales return, cash discount, and return of stock transferred goods in the revised assessment order. The respondent was directed to redo the assessment on these aspects after providing the petitioner with a personal hearing, emphasizing that if the petitioner is legally entitled to any relief, it should be duly considered. No costs were awarded in this judgment.