9911796707
TMI Blog2017 (12) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner s place of business was inspected by the Enforcement Wing on 26.11.2015, and certain defects were noticed viz., (i) the turnover for the previous year has exceeded Rs. 200 Crores and therefore, for the months the dealer has to pay interest for the belated payment of tax; (ii) on verification of other end dealers Annexure II, it was found that such dealers have not filed returns and the petitioner has claimed input tax; and (iii) the petitioner has made sales to SEZ unit located at other state and therefore, input tax credit has to be reversed. 2.Based on such findings, the respondent-assessing officer issued notice dated 12.01.2016, proposing to reverse the input tax credit availed by the petitioner. The petitioner submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e satisfaction of the Audit Unit and such dealers are also active and requested the respondent to take up the matter with the selling dealers. 5.The petitioner relied upon the decisions of this Court in Althaf Shoes (P) Limited vs. ACCT, Valluvarkottam Asst. Circle, Chennai reported in 50 VST 179 and in Sri Vinayaga Agencies vs. ACCT, Vadapalani-I Asst. Circle, Chennai and another reported in 60 VST 283. 6.Subsequently, the petitioner submitted another reply dated 11.03.2016, which appears to be a more elaborate rely. In the said reply, the petitioner relied on the definition of 'taxable turnover' as defined under Section 2 (38) of the TNVAT Act, and submitted that it shall be determined after making such deductions as prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to file their returns in their respective assessment circle. 9.Learned Additional Government Pleader, by referring to the counter affidavit filed by the respondent submitted that the taxable turnover exceeded Rs. 200 Crores in the previous year and in such case the dealer is liable to file his monthly returns along with proof of payment of tax on or before 14th of the succeeding month as per Rule 7(8) of the VAT Rules and read with Rule 5(1) of the CST Rules. Since the petitioner is in the regular habit of filing monthly returns belatedly, imposition of penal interest under Section 42(3) of the TNVAT Act is proper. 10.With regard to mismatch issued also, the respondent has justified the findings recorded in the impugned assessment order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14.To determine the 'turnover' under the CST Act, we have to refer to the Central Sales Tax Act (Registration and Turnover) Rules 1957 (in short CST (Registration and Turnover) Rules ). Under Rule 11(1) of the said Rules, the period of turnover in relation to any dealer liable to pay tax under the CST Act shall be the same, as the period in respect of which he is liable to submit returns under the General Sales Tax law of the appropriate State. Proviso states that in relation to a dealer, who is not liable to submit returns under the General Sales Tax law of the appropriate State (TNVAT), the period of turnover shall be a quarter ending on the 30th June, 30th September, 31st December and 31st March. 15.Save as otherwise expressly p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of personal hearing, the probabilities are, this litigation itself could have been avoided. The impact of the intimation sent by the Joint Commissioner (CT), LTU dated 30.12.2010, stating that the petitioner s taxable turnover has not exceeded Rs. 200 Crores and has to file returns before his assessing officer has not been analysed by the respondent. Whether at all the turnover under the CST Act could be clubbed with the turnover of the TNVAT Act, is an important question to be decided. However, the respondent having not considered these issues, this Court is of the view that the matter requires to be remanded to the assessing officer for fresh consideration, on the above factual and legal issues, after affording an opportunity of person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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