Tvtl.Muppuliyan And Co. vs. The Commissionor Of Commercial

Held

The Court held that the impugned order of assessment was passed in gross violation of the principles of natural justice. The assessing authority had failed to consider the objections filed by the petitioner and the opportunity sought by them to furnish supporting documents. The Court noted that the assessment order erroneously stated that no objections were filed. Consequently, the Court set aside the impugned order. The Assessing Authority was directed to issue a fresh notice to the petitioner, provide the documents sought, and complete the assessment after an inquiry, in line with Circular No.3/2019 dated 18.01.2019. The issue of the validity of the assessment itself, based on the merits of the ITC reversal, was not decided as the matter was remanded.

Facts

The petitioner, Tvl.Muppuliyan and Co, challenged an order of assessment passed by the Commercial Tax Officer for the period 2014-15 under Section 21 of the Tamil Nadu Value Added Tax Act, 2006. The assessment order proposed to reverse Input Tax Credit (ITC) based on a verification of sales returns filed by selling dealers and a comparison with the petitioner's sales details. The petitioner had requested invoice-wise particulars and third-party dealer details to file objections and evidence, which was acknowledged by the assessing authority. However, the impugned order was passed without considering these objections, stating that no objections were filed, which the petitioner contended was erroneous.

Key Issues

1. Whether the impugned order of assessment passed under Section 21 of the Tamil Nadu Value Added Tax Act, 2006, is vitiated by a gross violation of the principles of natural justice? Petitioner's arguments: The petitioner argued that the assessing authority failed to consider their objections and the opportunity sought to provide supporting documents, including purchase invoices and accounts, after requesting specific details of sales and third-party dealers. They contended that the assessment order erroneously concluded that no objections were filed, despite the acknowledgment of their submission. Revenue's arguments: The judgment does not record any specific arguments made by the respondents (revenue).