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2022 (10) TMI 5 - HC - VAT and Sales TaxClassification of goods - rate of tax - Aviation Turbine Fuel (ATF) - eligibility for concessional rate of tax - Section 84 of the Tamil Nadu Value Added Tax Act, 2006 - HELD THAT - The petitioner will appear before the Assessing Officer on Thursday, the 29th of September, 2022, without awaiting any further notice in this regard, along with a copy of reply dated 29.02.2012 and other materials, if any, in support of its claim of concessional rate of tax. The petitioner should be heard in full and a speaking order passed in this regard determining the appropriate rate of tax on ATF within a period of 8 weeks from date of personal hearing - Petition allowed.
Issues:
Challenge to proceedings of the Assessing Officer under Section 84 of the Tamil Nadu Value Added Tax Act, 2006 regarding the rate of tax on Aviation Turbine Fuel (ATF). Analysis: The petitioner supplied ATF to various entities, including airlines and organizations, leading to assessment proceedings based on filed returns for 2009-10 post an audit. The Assessing Officer questioned the concessional 4% tax rate claimed by the petitioner and requested supporting documents. The officer highlighted conditions from the Central Sales Tax Act related to sales of ATF to airlines and sought clarification on whether these conditions were met. The officer failed to conduct a thorough fact-finding exercise to determine if the petitioner fulfilled the conditions for the concessional rate, leaving the matter uncertain. The assessment contained flaws, including a lack of reasoning for denying the concessional rate and not incorporating the differential tax in the computation. Subsequently, under Section 84, the officer aimed to correct the error in the assessment related to the ATF rate. The petitioner submitted materials supporting the concessional rate claim, which the officer rejected without proper discussion or narration in the assessment order. The court noted the lack of comprehensive examination of the concession claim, leading to the setting aside of the assessment order and the Section 84 order. The petitioner was directed to appear before the Assessing Officer for a full hearing and a speaking order within 8 weeks to determine the appropriate tax rate on ATF.
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