9911796707
TMI Blog2024 (6) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... sed independently by an Assessing Officer under Section 81 of the TNVAT Act, 2006. Merely because assessment is deemed to be completed under Section 22 of TNVAT Act, 2006, ipso facto will not mean that an Assessing Officer cannot call for information from a dealer whose name features in the list under Section 22 (3) of the Act. In this case, it has been informed by the respondent Commercial Tax Department that the Commissioner of Commercial Taxes vide Letter dated 08.01.2021 bearing reference No. R5/4593/2017 has issued instructions relating to finalization of accounts relating to dealers who have been selected for detailed scrutiny under Section 22 (3) of the TNVAT Act, 2006 - there are no embargo on the respondent Commercial Tax Department from summoning the respective petitioners to furnish the records. Issuance of summons is for ascertaining to produce information. Whether the petitioners have complied with all the requirements of Section 22 (2) of the Act and whether the declarations in the returns filed by the petitioners are correct or not can be ascertained only if records are summoned. There are no merits in the present Writ Petitions and these Writ Petitions are liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion from an assessee, who has filed regular returns could be only in accordance with Section 22 (3) of the TNVAT Act, 2006. 6. Hence, it is submitted that the impugned summon is liable to be quashed. A specific reference was made to a decision of this Court rendered on 19.05.2021 in the petitioner's own case in W.P.(MD) Nos. 11328 to 11335 of 2017, wherein, it was observed as under:- 3. His core contention is that it is only the Commissioner of Commercial Tax who could have called upon the petitioner to produce the documents in question for detailed scrutiny and that the respondent herein is not possessed of the jurisdiction to do so. There can be no exception to his contention. In fact, the same is virtually conceded by the respondent. But then, the respondent would state that it was the Commissioner of Commercial Tax who had chosen the petitioner's assessment for random scrutiny and that pursuant to his proceedings dated 21.04.2017, the impugned summons came to be issued. However, in the impugned summons, there is no reference to the Commissioner's proceedings. 4. In any event, in view of the interim stay granted by this court, the summons have become virtually infruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment's initiation of issuing summon in Form-PP for production of accounts based on the two grounds namely shop inspection coupled with selection of random scrutiny by the Commissioner of Commercial Taxes. The issuance of Form-PP by the department is well within the jurisdiction of the assessing officer along with complying the statutory provisions. The petitioner's contention of issuance of Form-PP is not in accordance with the law either by invoking section 81 or failure to invoke section 65(4) is not at all sustainable. Being an assessing officer the respondent/assessing officer is having powers to verify the accounts of the dealer and to conduct any enquiry if required. The act of the respondent is only to discharge the official duty and well within the provisions of the statutory obligation. 8. Hence, it is submitted that the decision of this Court rendered on 19.03.2021 in W.P.(MD) Nos. 11328 to 11335 of 2017 is not relevant and therefore, these Writ Petitions are liable to be dismissed. 9. By way of rejoinder, the learned Senior Counsel for the petitioners reiterated that an identical issue was disposed of by this Court for the previous assessment year in W.P.(MD) No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, 1908 (Central Act V of 1908), for the purpose of - (a) summoning and enforcing the attendance of any person and examining him on oath or affirmation; and (b) compelling the production of any document. (2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summon is issued either to attend to give evidence, or produce accounts, registers, records or other documents at a certain place and time intentionally omits or fails to attend or produce accounts, registers, records or other documents at such place or time, the authority or officer mentioned in sub-section (1) may, after giving the person concerned a reasonable opportunity of being heard, impose upon him by way of penalty a sum not exceeding rupees five hundred. (3) Any officer of the Commercial Taxes Department, not below the rank of an [Deputy] Commercial Tax Officer shall have powers to call for such information, particulars or records as he may require from any person for the purpose of assessment, levy and collection of tax under this Act. 16. Miscellaneous:- (1) The summons under Section 81 for the production of a document or for the appearance of any person shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evision of assessment shall be made, wherever necessary. 14. As per Rule 10 (11) of the TNVAT Rules, 2007, the method of selection by the Commissioner referred to in sub-section (3) of section 22 shall be based on suitable stratified random sampling method and such selection shall not exceed twenty per cent of the cases assessed under Section 22 (2) of the TNVAT Act, 2006. 15. Wherever there is stratified random sampling method of selection, an assessee is required to be intimated the the details of such selection to the assessing authority for detailed scrutiny of accounts. Such list is to be exhibited on the Notice Board of the assessment circles and also in the website of the department. The assessing authority can call for the accounts of those assessees for detailed scrutiny and pass appropriate orders. 16. Section 81 of the TNVAT Act, 2006 is a generic provision. It is not confined merely to a third party. The power to issue summon to a witness and production of documents is very wide and would include a dealer. Under Section 81 of the Act, an Assessing Authority, or an Appellate Authority or a Revising Authority including the Appellate Tribunal or any Officer of the Commerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be forced to look into the returns of those assesses whose returns would have otherwise escaped scrutiny. 23. In this case, it has been informed by the respondent Commercial Tax Department that the Commissioner of Commercial Taxes vide Letter dated 08.01.2021 bearing reference No. R5/4593/2017 has issued instructions relating to finalization of accounts relating to dealers who have been selected for detailed scrutiny under Section 22 (3) of the TNVAT Act, 2006. 24. The paragraph 13.1.B of the letter of the Commissioner of Commercial Taxes has been extracted in paragraph 9 of the counter affidavit, wherein, it has been stated that Where Pre-Assessment notice or Best Judgment notices already initiated consequent to field audit or surprise inspection proposals received from Enforcement Wing, to the selected tax payers, no summons or notice need to be issued to the tax payers requiring them to produce books of accounts for detailed check under section 22 (3), if the related assessment years are already covered as it is presumed that detailed verification already been carried out during such inspection or audit of the premises of the tax payers . 25. Thus, I see no embargo on the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
