Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1020 - MADRAS HIGH COURTPenalty u/s 27(5)(ii) of the TNVAT Act - mis-declaration of value - it was alleged that the petitioner has not reported certain interstate sales in the monthly returns - the petitioner requested the respondent to wait till the adjudication under the Customs Act by the Customs Authority/DRI is completed. Further, the petitioner requested that fresh notice may be issued for each year after adjudication of the cases is over by the Customs Authority and also to give them an opportunity of personal hearing - Held that: - the averments in the counter affidavit filed by the DRI in the bail petition nor the averments which are set out in the show cause notice issued by the DRI dated 22.06.2016, can ipso facto be the basis for demand of sales tax. It is well open to the respondent to rely upon such material based on information received from the DRI. What is required to be done is to conduct independent enquiry for which the petitioner should be given opportunity of personal hearing. This can be done only after the DRI completes the adjudication of the show cause notice dated 22.06.2016, as all documents are in the custody of the DRI. Therefore, the respondent has to necessarily await the adjudication of the case by the DRI or the Customs Officials with regard to the allegation of sales suppression/mis-declaration of value. The respondent is directed to furnish all the details in respect of the allegation of mismatch and allegation of interstate sales suppression culled out from the website - so far as the assessment made under the head mis-declaration of value dated 22.06.2016, is concerned subject to the out come of the show cause notice issued by DRI dated 22.06.2016, the respondent is at liberty to initiate proceedings under the TNVAT Act - petition allowed - decided in favor of petitioner.
|