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2019 (7) TMI 246 - HC - VAT and Sales Tax


Issues:
- Deduction of taxes at source (TDS) by the writ petitioner's customers
- Deemed sale value of goods purchased from other States
- Granting of personal hearing to the writ petitioner

Analysis:
1. Deduction of taxes at source (TDS): The central theme in the seven writ petitions revolves around the TDS issue related to payments made by the writ petitioner's customers for work contracts. The assessment years in question range from 2009-2010 to 2015-2016. The Revenue contends that TDS was not deducted as required. However, the court does not delve into the merits of this issue in the current order.

2. Deemed sale value of goods: Another issue raised is the deemed sale value of goods purchased from other States, which the Revenue claims has not been reported, leading to unpaid taxes. Similar to the TDS matter, the court refrains from examining this issue on its merits in the present order.

3. Granting of personal hearing: The critical point for consideration is whether the writ petitioner was granted a personal hearing. The impugned orders are revised assessment orders under the Tamil Nadu Value Added Tax Act, 2006. The writ petitioner asserts that despite requesting a personal hearing, none was provided. The Revenue, on the other hand, states that a notice for personal hearing was issued and acknowledged by the writ petitioner, who allegedly failed to attend. However, the court finds discrepancies and lack of clarity regarding the actual communication of the personal hearing opportunity to the writ petitioner.

4. Legal Circular on Personal Hearing: The court refers to Circular No.7/2014, which mandates that personal hearing should be afforded to dealers irrespective of their choice. Considering the ambiguity surrounding the personal hearing in this case, the court deems it appropriate to remit the matter for a proper hearing.

5. Court Order: Consequently, the court sets aside the impugned orders solely due to the lack of a granted personal hearing, without expressing any opinion on the merits of the issues. A new personal hearing is scheduled, and the writ petitioner is required to attend and reiterate objections previously raised. Failure to attend will result in the revival of the impugned orders, while attendance will prompt the Revenue to reevaluate and pass revised assessment orders within 12 weeks.

6. Conclusion: The court disposes of all seven writ petitions with the outlined directions, emphasizing the importance of a fair personal hearing in the assessment process. No costs are awarded, and connected miscellaneous petitions are closed as a result of this judgment.

 

 

 

 

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