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TMI Blog2019 (7) TMI 1594X X X X Extracts X X X X X X X X Extracts X X X X ..... er (Administration), Commercial Taxes, Sriganganagar, and recommended to register the case against them under Section 61 of the VAT Act - the contention of the petitioners that the proceedings against them under Section 25(1) of the VAT Act were initiated after making out the case vide notice dated 25.4.16 purported to be issued under Section 75(1) of the VAT Act, cannot be accepted by this court. Apparently, the notices issued prior to the impugned notices, were the notices issued directing the petitioners to produce the relevant record so as to enable the Assessing Authority to arrive at the conclusion regarding the evasion/avoidance of tax or the petitioners wrongly availing the ITC and the same cannot be construed to be notices issued under Section 25(1) of the VAT Act - the date of notices issued under Section 25(1) of the VAT Act needs to be taken as the date of making out the case against the petitioners and the Assessing Authority would be well within its jurisdiction in passing the assessment order within the period of six months from the date of the said notice, which for the reasons recorded in writing in a particular case may be further extended by the Commissioner f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Taxes, Anti Evasion, Sriganganagar, who in its turn issued the impugned notices dated 21.3.18, 23.3.18 to the petitioner-assessee initiating proceedings under Section 25, 18, 55 and 61(2) of VAT Act. 5. Learned counsel appearing for the petitioners contended that the action of the Assessing Authority in initiating the proceedings against the petitioners under Section 25 of the VAT Act beyond the period of limitation is ex facie without jurisdiction and thus, impugned notices deserve to be set aside. Drawing the attention of this court to the provisions of Section 25(3) of the VAT Act, learned counsel submitted that no assessment under Section 25(1) can be made after expiry of the period of six months from the date of making out of the case. Learned counsel submitted that in the first instance, the notices were issued by the Assessing Authority to the assessees to verify the books of account, after conducting survey of the business premises on 25.4.16 and thereafter, further notices were issued. Drawing the attention of the court to the notice dated 20.5.16 issued by the Assessing Authority, learned counsel submitted that in the said notice it is specifically mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eupon, for the first time, the notice under Section 25, 18, 55 61(2) was issued to the petitioners by the Assistant Commissioner, Anti Evasion on 21.3.18 and therefore, the limitation in terms of provisions of Section 25(3) shall commence from the date of the issuance of the notice as aforesaid and not prior to it. Learned counsel submitted that the notice dated 25.4.16 followed by other notices, were issued to the petitioners under Section 75(1) of the VAT Act to produce books of account for verification. Learned counsel submitted that after completion of the investigation by the investigating officer when a prima facie case is made out, the case is put up before the Deputy Commissioner (Administration) for necessary action and thereafter, the appropriate proceeding as per the directions has been initiated against the petitioner-assessee by the Adjudicating Authority under Section 25(1) of the VAT Act and thus, by no stretch of imagination, the proceeding initiated could be treated to be barred by limitation. 7. I have considered the submissions of the learned counsels and perused the material on record. 8. The controversy raised in the instant petitions rolls around the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Power of entry, inspection and seizure of accounts and goods.-(1) An assessing authority or any officer not below the rank of Junior Commercial Taxes Officer authorised by the Commissioner in this behalf with such conditions and restrictions as may be specified by the Commissioner, shall have the power- (a) to inspect or survey the place of business of a dealer or any other place where it is believed by such authority or officer that business is being done or accounts are being kept by such dealer. (b) to direct such dealer to produce accounts, registers and documents relating to his business activities for examination. (c) to inspect the goods in the possession of the dealer or in the possession of anybody else on behalf of such dealer, wherever such goods are placed. (d) to make search of such place including the search of the person found there, where concealment of facts relating to business is suspected. (e) to break open the door of any premises or to break open any almirah, box, receptacle in which any goods, accounts, registers or documents of the dealer are suspected to be concealed, where access to such premises, almirah, box or receptacle is denied. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion noticed as above, the contention of the petitioners that the proceedings against them under Section 25(1) of the VAT Act were initiated after making out the case vide notice dated 25.4.16 purported to be issued under Section 75(1) of the VAT Act, cannot be accepted by this court. Apparently, the notices issued prior to the impugned notices, were the notices issued directing the petitioners to produce the relevant record so as to enable the Assessing Authority to arrive at the conclusion regarding the evasion/avoidance of tax or the petitioners wrongly availing the ITC and the same cannot be construed to be notices issued under Section 25(1) of the VAT Act. The documents on record in no manner reflects that the notices referred to by the petitioners were issued after making out the case against them rather, the same were issued by the Assessing Authority after the survey to procure the relevant record from the petitioners and the decision to initiate the proceedings was taken only after submission of the inspection report and the recommendations made by the authority, who conducted the survey of the business premises of the petitioners. Thus, the date of notices issued un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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