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2021 (4) TMI 503 - MADRAS HIGH COURTLevy of tax on turnover - transactions purportedly involving inter-state sales and branch transfers which were not supported by the Form-C and Form-F respectively - inclusion of freight element in taxable turnover - HELD THAT:- Assessments under the Tax enactments are by and large based on the returns filed by an assessee. In the case of Tamil Nadu Value Added Tax, 2006 and the Central Sales Tax Act, 1956, it is certainly driven by the returns filed by a “dealer” unless no returns were filed. In this case the petitioner had filed returns under the provisions of the Central Sales Tax Act, 1956. In the present case, the sale was concluded at the factory gates itself and therefore the freight element cannot from part of the taxable turnover as was rightly contented by the petitioner - Since the sale took place at the factory gate, the sale never assumed the character of an inter-state sale. It was actually a local sale. It was therefore to be assessed as a local sale under Tamil Nadu Value Added Tax Act, 2006. As an Appellate Authority, the 1st respondent is required to merely examine the correctness of the order passed based on the returns filed by an assessee. Therefore, if the first respondent as an Appellate Authority, finds that the petitioner had wrongly filed return by treating a transaction as that of an inter-state when it indeed it was that of a local sale, as an Appellate Authority, the 1st respondent was well within his rights to direct the Assessing officer to complete assessment in accordance with law - In the impugned order, the first respondent has not added any tax liability in the impugned order. The first respondent has merely directed the jurisdictional Assessing Officer to exercise the jurisdiction by revising the assessment. The original assessment which was impugned before the 1st respondent proceeded on a wrong assumption that the transactions were liable to tax under the provisions of the Central Sales Tax Act, 1956 when indeed the transaction in question was liable to tax under the provisions of the Tamil Nadu Value Added Tax Act, 2006. The direction in the impugned order to the Assessing Officer was not outside the scope of Section 52 of the Tamil Nadu Value Added Tax Act, 2006. The impugned order was based on the facts put forth by the petitioner - there are no merits in the present petition - the second respondent is directed to complete the assessment under the provisions of the Tamil Nadu Value Added Tax Act, 2006 - Assessing Officer directed to complete the assessment under the provisions of the Central Sales Tax Act, 1956 regarding the transaction involving branch transfer if the petitioner has produced requisite Form F - petition disposed off.
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