2017 (1) TMI 1640 - HC - VAT and Sales Tax

Failure to adjust excess tax paid - Section 84 of the Tamil Nadu Value Added Tax Act - Whether the representation made could be treated as a petition under Section 84 of the TNVAT Act? - Held that - If a direction is issued the respondent will consider the representation as a petition filed under Section 84 of the Tamil Nadu Value Added Tax Act and thereafter appropriate orders will be passed having regard to the assertions made therein - the writ petition is disposed of with a direction to the respondent to ascertain as to whether adjustment of Rs. 5, 26, 746/- is called for against the tax demanded via the impugned order dated 08.12.2016 - petition disposed off.

Summary

Issues:
Challenge to tax order; Failure to adjust excess tax paid; Representation under Section 84 of TN VAT Act.

Analysis:
The petitioner challenged an order demanding payment of Rs. 10,60,019. The petitioner contended that objections were filed against the notice and the respondent had accepted the objections, but failed to adjust excess tax paid amounting to Rs. 5,26,899. A representation was made to the respondent regarding this issue. The court inquired if the representation could be considered as a petition under Section 84 of the Tamil Nadu Value Added Tax Act. The respondent agreed to treat the representation as a petition under Section 84 and assured to consider it and pass appropriate orders based on the content. The court directed the respondent to determine if adjustment of Rs. 5,26,746 against the tax demanded was necessary, provide a personal hearing to the petitioner, and issue a speaking order within six weeks. The recovery of tax was stayed until a decision was made on the representation. The writ petition was disposed of with these directions, and a pending application was closed without any costs imposed.