2021 (1) TMI 63 - MADRAS HIGH COURT - CST, VAT & Sales Tax

Head Note / Extract:
Violation of principles of Natural Justice - validity of assessment orders passed under Section 27(2) of the Tamil Nadu Value Added Tax Act, 2006 - it is the case of the petitioner that despite the reply and without furnishing the documents sought for in their reply, the impugned assessment orders have been passed in violation of the principles of natural justice - HELD THAT:- The petitioner on receipt of the notice issued under Section 27 (2) of the Tamil Nadu Value Added Tax Act, 2006, has sent a reply on 23.03.2020, wherein, they have requested the respondents to provide the bill and date wise details for unreported purchases which the second respondent claims that the petitioner had suppressed - As seen from the assessment orders dated 16.11.2020, no explanation has been given by the second respondent as to why they are unable to provide the bill and date wise details for the alleged un -reported purchases made by the petitioner from the Spices Board, Cochin. The second respondent has mechanically accepted the audit report of the Accountant General and has come to the conclusion that there is suppression of purchases made from the Spices Board, Cochin, by the petitioner. When the petitioner has categorically denied any suppression of purchases, the second respondent ought to have furnished details of the alleged purchases made from the Spices Board, Cochin, to the petitioner As seen from the impugned assessment orders, the second respondent has mechanically accepted the audit report without any independent assessment and without affording sufficient opportunity to the petitioner to place their objections in the revision of assessment proceedings under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 - Matter is remanded back to the second respondent for fresh consideration and the second respondent shall pass final orders on merits and in accordance with law after giving adequate opportunity to the petitioner - petition allowed by way of remand.