Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 1028 - HC - VAT and Sales TaxProcedure of raising demand of VAT on unreported sale - re-assessment or rectification of any error apparent on the face of the record. - As per the SCN, it is seen that the petitioner has effected sale of assets during the year 2010-2011 and they have not produced any proof for having reported the said sales and paid tax to the Department. Therefore, it was proposed to levy tax at 4% on the sale value. Apart from that, there was a proposal to impose penalty under Sections 27 and 28 of the Act at 150%. - The respondent stated that Section 84 of the Act can be invoked only for the error apparent on the face of the record viz., Clerical errors and Arithmetical mistakes etc. But it cannot be invoked for considering the records filed after the assessment notice. The said notice is challenged in this writ petition. - Tamil Nadu Value Added Tax Act (TNVAT) Held that:- the observation in the impugned notice, that Section 84 cannot be invoked for considering the records filed after the assessment is over, is an incorrect observation, since the records were never called for and those records were anterior to the Pre-Assessment Notice and the transaction is said to have been disclosed in the balance sheet which was produced by the petitioner along with the reply dated 14.05.2014. Hence, this Court is satisfied that the respondent should exercise its jurisdiction under Section 84 of the Act. Writ Petition is allowed and the impugned order is quashed and the matter is remanded to the respondent for fresh consideration to take into consideration the documents produced by the petitioner along with the petition filed under Section 84 of the Act, after affording an opportunity of personal hearing to the petitioner and pass a reasoned order on merits and in accordance with law. - Decided in favor of assessee.
|