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2015 (10) TMI 2515 - HC - VAT and Sales TaxDemand of VAT on exempted turnover - suppression of turnover - principle of natural justice - chillies and chilly powder fall under Entry 18 of the Part-B of IV Schedule to the TNVAT Act and sale of the same by any dealer is exempted from tax by Section 15 of the TNVAT Act, whose turn over in respect of those items does not exceed Rupees three hundred crores in a year. The petitioner total turn over of chillies and chilly powder for the assessment year 2014-2015 is below the limit of Rupees three hundred crores and hence, the petitioner claimed exemption on their local sales turn over of ₹ 10,22,09/,426/- in the regular monthly returns filed under the TNVAT Act. - the respondent stated that the 'petitioner have reported a total turn over (CST+VAT) of ₹ 353,63,85,695 for the year 2014-2015' and requested the petitioner firm to pay tax of 5% for exempted sale under commodity code-2052. Held that:- as per Section 22(4) of the Act, before passing the impugned order, personal hearing is must to put forth the contentions of the petitioner firm. In the case on hand, it is seen that no such personal hearing was given to the petitioner to substantiate the claim of the petitioner. Accordingly, the order impugned in this Writ Petition stands set aside and the respondent is directed to provide a personal hearing to the petitioner within a period of four weeks from the date of receipt of a copy of this order. After doing so, the respondent is directed to pass appropriate orders on merits and in accordance with law within a period of four weeks from the date of personal hearing.
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