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2022 (4) TMI 1352 - HC - VAT and Sales TaxMaintainability of petition - time limitation - whether the impugned order passed by the respondent on 07.03.2019 can be said to have been passed within the limitation prescribed u/s 27 of the TNVAT Act, 2006 - HELD THAT:- The notice that was issued to the petitioner on 10.10.2018 merely states that a cross verification of the check post data of the department reveal that the petitioner had purchased the goods from the outside of the State. A dealer paying tax under Section 6(1) of the Tamil Nadu Value Added Tax Act, 2006 should not purchase goods from the other States and effect sales. Hence, Section 6(1) of the Act, does not apply and therefore, notice proposed to levy tax under Section 5 of the Tamil Nadu Value Added Tax Act, 2006 at 14.5% - Pursuant to the impugned order dated 07.03.2019, a notice of assessment and demand in Form 'O' was also issued calling upon the petitioner to pay the aforesaid tax of ₹ 24,18,434/-. Similarly, the notice of interest under Rule 16(5) of the TNVAT Rules, 2007 in Form 'RR' was issued on 07.03.2019 and thereafter, the petitioner was called upon to pay the aforesaid penalty of ₹ 39,01,499/-. In the present case, the notice has been issued in time for revising the assessment and therefore, to that extent, the initiation of the proceedings cannot be questioned. However, the demand is based on the data in the web portal of the respondent. Though the Circular No.5 of 2021 bearing reference No.LW10/12521/2016, dated 24.02.2021 is for mismatch in ITC claim, the method devised therein can be used to co-relate the purchase and sales turnover of a dealer and can be applied to the petitioner's case mutatis mutandis. The case is remitted back to the respondent to pass fresh order, within a period of three months from the date of receipt of a copy of this order - petition disposed off.
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