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2013 (10) TMI 136 - HC - VAT and Sales TaxClassification of goods - Audit u/s 43 - Held that:- Section 43 of the Value Added Tax Act empowers the Commissioner to audit the accounts, registers or documents of a dealer for any year or part thereof not being a period which ended five years previous to the date of selection. Sub-section 3 as already indicated above requires the preparation of the report containing the observation and findings, regarding correctness of the returns, admissibility of various claims of the dealer for which the audit is conducted and the preparation of computation sheet quantifying the tax interest or late fees. Sub-section 5A of the Act says that if the dealer fails to pay the tax interest and late fees stated in the computation sheet within one month of the receipt of such report, it would culminate into an order of assessment and shall be deemed to be notice of demand. There is a distinction between the levy and the assessment, as the levy is wider in its import than the assessment so as to include both the imposition of tax and the assessment - Section 5A of Section 43 of the Act specifically provides that in default of the payment of the tax interest or the late fees stated in the computation sheet, it would partake the character of an order of assessment and shall be deemed to be a notice of demand. Rule 54 (7A) of the West Bengal Value Added Tax Rule, 2005 also makes the determination of tax interest or late fees in the computation sheet be deemed to be an order of assessment in default of its payment within a specified date. Audit made under Section 43 and the computation of tax, penalty and late fees shall be deemed to an order of assessment in default of the payment within one month from the date of the service of the report and the computation sheet is amenable to be challenged before the tribunal under Section 5 & 6 of the Taxation Tribunal Act - Decided against assessee.
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