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TMI Blog2014 (2) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... books of the 1st respondent. For the period 2008-09, the 1st respondent assessed the returns filed by the petitioner under the TNVAT Act and CST Act. For the assessment year 2008-2009, the petitioner was assessed on a self assessment basis for a total and taxable turnover of Rs.163,53,58,625/- under the TNVAT Act. This was confirmed by an order TIN / 33690962728 / 2008-09 dated 17.07.2012 issued by the 1st respondent. A nominal deficit tax of Rs.1,193/- was observed as unpaid and accordingly Form O was issued. 4. The 1st respondent has subsequently issued a Notice bearing No. TIN 33690962728/2008-09 dated 06.05.2013 asking for copies of monthly returns in Form I for the period from April, 2008 to March, 2009 along with Annexures I to IV. The petitioner was also required to file necessary document pertaining to payment of works contract tax amounting to Rs.83,07,866/-. Likewise, the petitioner was asked to furnish payment details of the difference between tax paid under the TNVAT Act amounting to Rs. 2,81,31,434/- [Rs.1,98,23,568/- under TNVAT and Rs.83,07,866/- under Works Contract Act, on the one hand and the tax paid as perm the assessment order amounting to Rs.2,54,36,345/-. Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 1st respondent. A nominal excess tax of Rs. 439/- was observed to have been paid and accordingly Form P was issued. 7. The 1st respondent has subsequently issued a Notice bearing No. TIN 33690962728/2009-10 dated 06.05.2013 asking for copies of monthly returns in Form I for the period from March, 2010 along with Annexures I to IV. The petitioner was also asked to file necessary documents to verify the correctness of the zero rate turnover of Rs.3,31,68,938/- for the month of February 2010. Likewise, the petitioner was asked to furnish reasons for the difference between the exemption of a turnover of Rs.1,09,37,869/- claimed in the monthly returns and exemption allowance to the tune of Rs.3,81,27,380/-. Petitioner filed a reply on 26.06.2013 stating that they were assessed by the office of the Adyar II Assessment Circle till March 2011 and that the documents pertaining to monthly returns in Form I for the period April 2007 to March 2008 with relevant annexures were available there. Further, with respect to the correctness of the zero rated turnover ofRs.86,32,743/- for the month of February, 2010, the petitioner stated that this was done by oversight and that by inadvertence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with Annexures I to IV. The petitioner was also required to file necessary document pertaining to payment of works contract tax. Petitioner filed a reply on 26.06.2013 stating that they were assessed by the office of the Adyar II Assessment Circle till March 2011 and that the documents pertaining to monthly returns in Form I for the period April 2007 to March 2008 with relevant annexures were available there. Likewise, it was mentioned that workings pertaining to collection of works contract tax were enclosed in Annexure II of the monthly sales tax returns. 11. A revised notice dated 19.07.2013 was issued by the 1st respondent proposing to tax the difference between the sales reported in the trial balance and the sales turnover reported in the return @ 12.5%. Similarly, it was also proposed to levy tax on a best judgment basis on the difference between the purchase turnover as shown in the trial balance (Rs.24,434.42 lakhs) and the purchase as shown in the returns (Rs.534.97 lakhs). Petitioner filed its reply on 27.08.2013 stating that there was no sales suppression; the sales as per the trial balance included entry tax and did not deduct the trade discount given by the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t they have not produced the audited trial balance and Profit and Loss Account pertaining to the State of Tamil Nadu is baseless and without regard to the well established accounting practices. It is his contention that the consolidated books of accounts are audited only at the company level that includes all the branches of the company. Therefore, the financial statements are prepared on various data that is available at the company level. Derivation of these accounts from the company level to the entity level involves various estimates. These estimates would not give a true and fair view of the financial position of the company at the entity level. It is also his submission that it would be impossible to get the audited trial balance at the entity level and is impossible to procure as per the prevailing accounting practices and therefore, the expectation of the 1st respondent on a particular document, which is impossible to procure itself is a violation of the principles of natural justice. 15. On the other hand, Mr. V. Hari Babu learned Additional Government Pleader (Tax) submits that the respondent Commissioner has issued a notice on 26.09.2013 and reqeusted the assessee to fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice, the petitioner filed its objections vide their letter dated 27.08.2013 and gave a detailed reply on all the following points viz. (1) Monthly returns in Form I, (2) regarding Works Contract Tax liability, (3) Sale of used oil, (4) Proposal to tax free of cost supply of accessories to customers, (5) regarding replacement under warranty, (6) regarding purchase discount, (7) regarding sales suppression, (8) regarding allegation of purchase omission and (9) regarding proposal for levy of penalty. All these objections were taken into account and the respondents took a view that all these can be considered only on verification of the relevant audited trial balance and Profit and Loss account for the State of Tamil Nadu. As there was no production of document, the respondent has confirmed the proposal to tax and passed the impugned orders and consequently, sent notices to the banks in which the petitioner holds an account about the pendency of the tax payment. 18. A perusal of the material documents reveals that what are all the information available with the assessee had been furnished to the department and the assessee had been duly assessed to tax and the liability had been fix ..... X X X X Extracts X X X X X X X X Extracts X X X X
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