Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2019 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1246 - HC - VAT and Sales TaxPrinciples of 'Substantial Compliance' or 'Substantial Justice' - Benefit of compounded rate of tax - works contract - allegation that the assessee not filed the formal application to the assessing authority along with the first monthly return in prescribed Form No.'L' as required under Section 6(2) of the Tamil Nadu Value Added Tax Act, 2006 - however, Assessee had filed the regular monthly returns in Form 'L' and had satisfied the condition of Section 6 of the Act to the effect that it had not made any purchase of the goods from outside the State of Tamil Nadu - HELD THAT:- The Assessee had complied with the substantial conditions for availing the benefit of payment of tax at the compounded rates under Section 6 of the Act. The substantial condition to be satisfied in the said provision of Section 6(2) of the TNVAT Act was that the Assessee does not effect any purchases of goods from outside the State (or) imports the goods from outside the State and therefore, he can opt to pay the tax at the Compounding Rates under Section 6(2) of the Act and also file the monthly return in Form 'L' as prescribed under the Rules. In the impugned Assessment Order passed, the Assessing Authority himself has admitted this position of compliance of the substantial condition by the Assessee - there is no dispute that the Assessee also filed monthly returns in terms of Section 6 in prescribed Form 'L' and not in Form 'I' applicable to the payment of regular tax under Section 5 of the Act. The terms of Sub-section (2) to Section 6, which employs the terms "may apply to the assessing authority" prima facie indicates that the said requirement is of a directory nature and not mandatory. The words used are not "shall" but "may". The words "may' usually would render compliance of the provision directory and not mandatory - Therefore, the said requirement of exercise of option by way of application cannot be said to be a condition precedent for availing the benefit of payment of compounded rate of tax under Section 6 of the Act. The substantial compliance with the provisions of the Act in the form of not making any purchases from outside the State and payment of tax under monthly returns under Form 'L' has been satisfied by the Assessee. Merely lapse of making a formal application, though no such form is prescribed under the Rules, cannot be said to be fatal to apply Section 6 of the Act to the Assessee in the present case - the learned Single Judge had rightly allowed the benefit of Section 6 to the Assessee in the present case and the present appeal filed by the Revenue, assailing the said order of the learned Single Judge deserves to be dismissed. Appeal dismissed.
|