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2016 (11) TMI 260 - HC - VAT and Sales TaxRectification of mistake u/s 84 of the TNVAT Act - whether the respondent would be entitled to accept the C and F declaration forms, after the assessments are completed? - Held that - the decision in the case of State of A.P. v. Hyderabad Asbestos Corporation Ltd. 1994 (4) TMI 302 - SUPREME COURT OF INDIA relied upon and circular dated 28.02.2001 relied upon where the circular instructing the Assessing Authorities that they are empowered to revise the assessments under Section 55 of the erstwhile Tamil Nadu General Sales Tax Act, which is in pari materia with Section 84 of the TNVAT Act on furnishing of declaration forms - it would be well within the jurisdiction of the respondent to accept the forms and consider the same, in accordance with law. There will be a direction to the respondent to entertain the petitioner s petitions under Section 84 of the TNVAT Act, dated 07.09.2016 for all the seven assessment years and direct the petitioner to appear in person and produce C and F declaration forms and on verification, the respondent shall re-do the assessments in accordance with law. In the light of the above directions, the attachment of the petitioner s bank account shall be lifted and no coercive action shall be initiated till the petitions under Section 84 of the TNVAT Act, are considered and disposed of. The above exercise shall be complied with by the respondent, within a period of four weeks - petition disposed off - decided in favor of petitioner.
Issues: Petitioner seeks rectification of error in assessment proceedings under TNVAT Act for multiple years. The main issue is whether the respondent can accept C and F declaration forms after assessments are completed.
Analysis: 1. Rectification of Error in Assessment Proceedings: The petitioner, a Public Limited Company engaged in medicine manufacturing, filed writ petitions seeking direction to rectify errors in assessment proceedings under TNVAT Act for the years 2007-2008 to 2013-2014. The assessments were initially completed based on 'C' declaration forms provided by the petitioner. Subsequently, the petitioner obtained more 'C' form declarations and requested the respondent to accept these forms and rectify the assessments under Section 84 of the TNVAT Act. The petitioner filed petitions under Section 84 and submitted a representation stating their possession of the original forms, pending consideration before the respondent. 2. Acceptance of C and F Declaration Forms Post-Assessment: The crucial issue revolves around whether the respondent can accept C and F declaration forms after assessments are finalized. The Hon'ble Full Bench of the Court, in the case of State of Tamil Nadu Vs. Arulmurugan & Co., held that assessing authorities have the power to allow further time for filling C forms on sufficient cause, and corrective actions, including reopening assessments, can be taken to rectify mistakes. This decision was affirmed by the Hon'ble Supreme Court in State of A.P. v. Hyderabad Asbestos Corporation Ltd. The Commissioner of Commercial Taxes also issued a circular empowering Assessing Authorities to revise assessments on furnishing declaration forms under Section 84 of the TNVAT Act. 3. Court's Direction and Conclusion: Considering the legal precedents and circular, the Court directed the respondent to entertain the petitioner's petitions under Section 84 for all seven assessment years, instructing the petitioner to appear in person and produce C and F declaration forms for re-assessment. The respondent was ordered to re-do the assessments within four weeks, lifting the attachment on the petitioner's bank account and refraining from coercive actions until the petitions are resolved. The writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed. This judgment clarifies the authority of the respondent to accept C and F declaration forms post-assessment under the TNVAT Act, emphasizing the importance of rectification and compliance with legal procedures for fair assessments.
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