TMI Blog2021 (4) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... s, after the Assessing Officer issued a supplemental show cause notice. The correctness of this direction is called in question. In the instant case, the pre-revision notices were triggered on account of the inspection conducted by the Enforcement Wing. As pointed out by the learned Writ Court, this can be at best cause of action to reopen the assessment by invoking power under Section 27 of the Act, but while issuing pre-revision notices, assessee cannot straightaway make a proposal for ad-hoc reversal of the input tax credit, when the appellant assessee would state that they have got sufficient records to prove that no such reversal can be done, much less ad-hoc reversal on input tax credit. Therefore, the appropriate procedure that sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Pleader. JUDGMENT T. S. SIVAGNANAM, J., Heard Mr.R.L.Ramani, Senior Counsel for Mr.S.Raja Jeya Chandra Paul, learned counsel appearing for the appellant in all the Writ Appeals and Mrs.J.Padmavathi Devi, learned Special Government Pleader appearing for the respondent in all the Writ Appeals. 2. With the consent on either side, these Writ Appeals are taken up for final disposal. 3. The appellant is a registered dealer on the file of the respondent under the provisions of the 'Tamil Nadu Value Added Tax Act, 2006' ('TNVAT Act' for brevity). The appellant had filed the Writ Petitions challenging the pre-revision notices issued by the respondent for the Assessment Years 2011-12 to 2014-15. 4. Principa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant had demonstrated the learned Writ Court that the proposal in the pre-revision notices for ad-hoc reversal is without any basis, as the sale price was never lower than the purchase price except for one item, viz., Sweetened Gingelly Seed, which is also a very negotiable amount and in all other cases, invariably price is much higher than the purchase price. The department appears to have restrained the prayer contending that the prerevision notices cannot be put to challenge and the appellant should submit their objections. 6. On a reading of the impugned orders passed in the Writ Petitions, we find that the substantial portion of the contention advanced by the appellants were accepted and found favour with the learned Wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a notice to the assessee to produce all records to examine as to whether there has been any huge accumulation of input tax credit on account of lesser sale price than purchase price. This required to be mandatorily done by the Assessing Officer in the light of the Circular dated 04.11.2013. The circular instructions cannot bind the assessee, but it binds the Assessing Officer, who is the subordinate authority in the hierarchy of authority in the Commercial Tax Department. Therefore, the pre-revision notices straightaway proposing the ad-hoc reversal is not sustainable in law. 9. For the above reasons, these Writ Appeals are allowed. The orders passed in the Writ Petitions are set aside. Consequently, the prerevision notices are set asid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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