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TMI Blog2018 (3) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... utomobile customers. For manufacturing customized automotive components, purchases raw materials (i) locally from registered dealers, (ii) inter-State and (iii) import. 3. All the purchases so made are accounted for, in the regular books of accounts maintained by the appellant, in the course of its business. Movement of goods is accounted for by way of inward receipt from the point of entry to the point of factory for manufacture. After manufacture, the output that arises out of the use of raw materials purchased by way of intra-state, inter-state and import, are accounted for, in the books of accounts and sold to the respective customers, locally, as well as inter-state. Monthly returns are filed disclosing the sales and tax is paid based on the sale of the said goods. 4. It is further stated that returns have been filed since commencement of the business in 2009 and deemed to be accepted by virtue of Tamil Nadu Act 23 of 2012 w.e.f. 19.06.2012. The provision relating to filing of form WW was introduced by Tamil Nadu Act 18 of 2012, with effect from 30/08/2012, vide Section 63-A read with Rule 16A of the Tamil Nadu Value Added Tax Act, 2006, mandating filing of accounts, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ravires of the provisions of the Act. 8. After hearing the arguments of both sides, Writ court, on 21.12.2017, passed the following order. " 3. Learned counsel for the petitioner made elaborate submissions to justify the ground of challenge that the respondent is not empowered to invoke Section 27 of the TNVAT Act for making reassessment on the alleged escaped turnover without following the procedure under the said provision. Further, it is submitted that admittedly there is no tax payable on import or interstate purchases, there is no jurisdiction for the respondent to make estimation by adding 15% towards gross profit by presuming that they were sold by treating the alleged estimated sales suppression, more so when the same is reported and tax paid on the sales. Further, it is submitted that the respondent is not entitled to make an estimation of the alleged sales by adding 15% towards the alleged purchases by way of import when admittedly the same reported and sales tax paid. Learned counsel also drawn the attention of this Court for the observations made by the Assessing Officer and submitted that no enquiry was conducted, books of accounts were not called for and facts were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of customized goods, which were sold locally and declared in the returns and tax paid, the result is estopped from treating the inter-state and import purchases, as suppression; that the writ court has failed to consider that the respondent, as a quasi-judicial authority under the Act, has miserably failed to conduct an enquiry, as contemplated under the Act, before invoking Section 27 of the Act, for assessing the alleged escaped taxable turnover, in view of dictum laid down by the Hon'ble Apex Court, in State of Tripura vs Manoranjan Chakraborthy and others reported in 122 STC 594; that the writ court failed to consider that in view of the issue, relating to claim of input tax credit, already covered by a decision of this court, which binds the respondent, writ court ought not to have dismissed the writ petition, and that the writ court failed to see that the penalty under section 27(4) imposed is without jurisdiction, apart from being unwarranted and uncalled for, on the facts of the case. 10. Supporting the submissions made, during the course of hearing of this writ appeal, Mr.V.Sundareswaran, learned counsel for the appellant, brought to the notice of this court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amined/ discussed in the order and assessment orders simply state that the objections filed by the dealers are overruled and proposals are confirmed . Such type of orders will not also stand in the test of law. Further, where there is a provision in the Act, requiring the dealer of being given a reasonable opportunity of being heard, which has also not been followed in many cases. 3.In the light of the above, the following circular instructions are issued which must be scrupulously followed by assessing officers while passing assessment orders. Joint Commissioner/ Deputy Commissioners should verify at random the assessment orders passed by the Assessing Officer while taking up cursory inspection and ensure compliance with these basic procedures while passing orders. a) Passing of orders: Fifteen days time limit shall be given as reasonable opportunity to dealers before passing any order and it shall be reckoned from the date of service of the notice. No order shall be passed without being satisfied of the reasonable opportunity and adopting the following process. I) After issue of notice calling for the objections, if any further time is & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d limitation. d) Filing or WP/WA/TC: A review petition on the order of writ petition/writ Appeal/Tax Case (Revision) may be filed before the High Court within a period of 30 days from the date of receipt of the order of High Court, if there is any fresh facts which have not been brought to the notice of the High Court while passing the order. e) Filing of Writ Appeal In regard to filing of Writ Appeal, the time limit prescribed is 30 days from the date or receipt of the order in the Writ petition. Hence, the officer should send a copy of the order immediately to the Joint Commissioner (Legal) will take up the issue to the SGP (Taxes), obtain legal opinion and send it to the officer for getting administrative sanction from the Commissioner through the Joint Commissioner (CT) of the respective Divisions. On getting order from the Commissioner, the officer should meet the SGP (Taxes) along with connected records to prepare Appeal Memorandum and file the Writ Appeal. If there is any delay in filing Writ Appeal, the appeal may be filed along with a delay condone petition. f) Collection of Cheques during the course of inspection/VAT Audit: At present there is no provision in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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