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2015 (3) TMI 1265 - HC - VAT and Sales TaxPrinciples of natural justice - The reasons mentioned in the SCN are not mentioned in the final order and the authority had arrived at a conclusion giving a totally different version for the order - The authority has failed to take into consideration that the purchaser cannot be penalised even for the non-payment of tax by the seller. Held that: - the reason given in the SCN are not the same as given in the final order and it is totally different. It is against the principles of natural justice. Consequently, even assuming for a moment that if at all the petitioner has produced the transport bills and noted lorry registration numbers in Form-8, it would not definitely show the petitioner is acting against the law, when admittedly the sale was performed in the Tuticorin Port yard itself. The material imported is woods and the sale and purchase prices have been transacted through bank transactions. Therefore, the question of way-bill and lorry registration numbers does not arise, especially in view the fact that the petitioner as well as the seller both of them have got officially registered godowns in the Tuticorin Port Yard, for which details, documents have been produced to the authority concerned. This vital fact has not at all been considered by the authority. More over, it is an admitted fact that what has not been asked in the SCN cannot be a ground for passing a final order. It is for the purchaser to produce the way-bill. In this case, after the SCN, the petitioner also produced annexure-2 and thereafter, tax has been paid by the selling agent. When that has been produced as early as on 22.01.2015 along with reply, no proper explanation has been given in the order and further opportunity has not been given. The authority should have taken into consideration the tax paid by the seller and as stated supra, even as per the Rule 10(2) of the TNVAT Act, there is no violation. Since both the purchaser and the seller have godowns in Tuticorin Port yard itself, the question of producing way-bill and noting of lorry registration numbers does not arise at all. Petition allowed - decided in favor of petitioner.
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