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2016 (9) TMI 1424 - HC - VAT and Sales Tax


Issues:
Challenge to orders of assessment under the Central Sales Tax Act for the Assessment Years 2013-2014 and 2014-2015.

Analysis:
The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act, 2006 and the Central Sales Tax Act, 1956, contested the assessment orders under the Central Sales Tax Act for the years 2013-2014 and 2014-2015. The primary issue revolved around the non-availability of C Forms for inter-state sales, leading to a proposal for revising turnover and taxing the transactions. The petitioner responded by producing the C Forms upon receiving pre-revisional notices. The respondent, after verifying the C Forms and the petitioner's explanation, allowed a concessional rate of tax but attempted to reverse the Input Tax Credit [ITC] under specific sections of the TNVAT Act, 2006. However, the court noted that since there was no proposal in the show cause notice regarding the reversal of ITC, the respondent could not have taken such action, even if they had supporting material.

Therefore, the court quashed the impugned orders directing the reversal of ITC under the mentioned sections of the Act due to this technical flaw. The court confirmed the orders of assessment in favor of the dealer/petitioner for other aspects. The judgment, delivered by Mr. Justice T.S.SIVAGNANAM, highlighted the importance of adhering to procedural requirements and ensuring that actions taken by authorities are within the scope of the notices issued. The writ petitions were partly allowed with no costs, and the connected miscellaneous petitions were closed as a result of the judgment.

 

 

 

 

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