2016 (11) TMI 548 - HC - VAT and Sales Tax

Validity of revised assessment order - TNVAT Act, 2006 - non-production of necessary documents - whether the petitioners have produced necessary records, invoice, etc., to substantiate their plea? - Held that - When the Appellate Authority was satisfied that the petitioners have produced the invoice copies and were directed to produce the same before the Assessing Officer and the petitioner having produced the same, nothing prevented the Assessing Officer to cause a thorough verification and then pass a speaking order. Therefore, the impugned orders in all these cases are out come of non-application of mind as have been passed in violation of the principles of natural justice, apart from not taking into consideration the direction issued by the Appellate Deputy Commissioner (CT), Cuddalore - petition allowed - matter remanded for fresh consideration to the respondent, who shall afford an opportunity of personal hearing and direct the petitioners to produce all the invoices and other documents, make thorough verification of the same and thereafter redo the assessments in accordance with law

Summary

Issues:
Challenging revised assessment orders under TNVAT Act for the assessment year 2013-14 based on lack of necessary records and proof of tax remittance.

Analysis:
The petitioners contested revised assessment orders dated 01.08.2016 and 02.08.2016 under the Tamil Nadu Value Added Tax Act, 2006. The central issue revolved around whether the petitioners had provided essential records, invoices, etc., to support their claims. The impugned orders highlighted the absence of produced records and questioned the proof of full tax remittance to the Government. Notably, the petitioners, as purchasing dealers, were not obligated to demonstrate the tax remittance by the selling dealer. Following a remand order by the Appellate Authority, it was revealed that the petitioners, in a related case, successfully convinced the Appellate Authority by presenting invoices reflecting the full Value Added Tax without discount deductions. This led to a remand directive to the Assessing Officer for further scrutiny.

Upon the Appellate Authority's satisfaction with the invoice copies provided by the petitioners, the Assessing Officer summoned the necessary documents but eventually issued impugned assessment orders, claiming insufficient evidence to support the petitioners' claims. The High Court found fault with these orders, citing a lack of proper application of mind and violation of natural justice principles. The Court emphasized that the Assessing Officer should have conducted a thorough verification after the petitioners produced the required documents, as directed by the Appellate Deputy Commissioner. Consequently, the Court allowed the Writ Petitions, setting aside the impugned orders, and remanded the matter for fresh consideration. The respondent was instructed to provide a fair hearing opportunity to the petitioners, verify all invoices and documents, and conduct assessments in compliance with the law. No costs were awarded, and connected Miscellaneous Petitions were closed.