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2019 (12) TMI 539 - HC - VAT and Sales TaxDeduction of tax at source - production, supply and sale of electricity, and for the purpose of production of the electricity - deduction of 2% on account of VAT - Section 45(1) of the Jharkhand Value Added Tax Act, 2005 - HELD THAT:- A plain reading of section 45(1), shows that the deduction of the TDS from the bills raised by the CCL for supply of coal, was mandatory on the part of the petitioner Company, which the Company had not carried out, though the fact remains that the State has not been put to any loss thereby, and this is a case of revenue neutral, so far as the tax liability is concerned, as admittedly, the State has already realised its due tax from CCL. However, the fact remains that the wordings of sub-Section (5) of Section 45 of the J.V.A.T. Act shows that the penalty was required to be realised from the petitioner Company. The Proviso also makes it clear that before imposing the penalty the petitioner Company was required to be heard in the matter, meaning thereby, that the Company could make out a case, that it was not liable to pay any penalty what so ever, which the authority concerned was required to record in the assessment order, with his reasons to differ, in case the authority disagreed. A plain reading of the impugned assessment orders clearly show that the mandate of Proviso to Section 45(5) of the J.V.A.T. Act, has not been followed by the Assessing Authority. There is no discussion at all about the defence of the Company and without stating anything about the reasons that might have been shown before the Assessing Authority by the counsel for the Company, the assessment orders / demand notices have been passed. The assessment orders can safely be termed as absolutely non-speaking orders, sans giving the facts only about the functioning of the Company and quoting the provision of law - the impugned orders / demand notices cannot be sustained in the eyes of law. Matter remanded back to the Assessing Authority to pass the reasoned order afresh, after giving proper hearing to the petitioner Company, positively within a period of six months from the date of communication of a copy of this order - appeal allowed by way of remand.
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