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TMI Blog2010 (9) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... t respondent in TNGST No. 4881024. On March 23, 2005, the enforcement wing inspected the petitioner's industry and certain stock differences were recorded. Thereafter, the petitioner made a petition to rectify the difference before the enforcement wing, the Deputy Commercial Tax Officer II, (Central Enforcement Wing), Madurai on April 19, 2005 stating that the stock was not taken properly as per the books of accounts. However, the same was not considered by the first respondent. Thereafter a pre-assessment notice was issued on April 10, 2006 to the petitioner, against which the petitioner filed a detailed objection on July 5, 2006 stating that they are maintaining correct accounts and there was no stock difference. However, the Deputy Comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passing an order under section 16D of the TNGST Act, without considering the real facts, the second respondent has simply rejected the application stating that the petitioner has not filed any reply to the pre-assessment, and hence, there is no violation of principles of natural justice. For the abovesaid reasons, learned counsel for the petitioner has prayed to set aside the same. On the basis of the counter-affidavit filed by the Deputy Commercial Tax Officer, Tallakulam Circle, Madurai, Mr. Pala. Ramasamy, learned Special Government Pleader, submitted that the petitioner is an assessee on the file of the first respondent. According to the first respondent, the petitioner was assessed on a total and taxable turnover of Rs. 10,42,899 aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amil Nadu General Sales Tax Rules, 1959 the petitioner has to keep and maintain up-to-date, true and correct account showing full and complete particulars of his business and such other records as may be prescribed. According to the learned Special Government Pleader, the inspecting officers had taken the actual stock available at the time of inspection, only with the assistance of the petitioner and that the petitioner has also admitted the stock variation before them. He further submitted that being a manufacturer, the deficit stock in raw materials as well as finished goods represent only sales suppression of finished goods which is taxable. Hence, it cannot be left out. Regarding the assessment made on the sale of machinery, the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts powers. As per subsection (2) of section 16D of the Act, notwithstanding anything contained in this Act, the Special Committee, may of its own motion or on application, call for and examine the records of the assessing authority in respect of any proceeding or order under sub-section (2) or (3) of section 12 or sub-section (1) or (2) of section 16, if such proceeding or order passed in violation of the provisions of the Act or Rules made thereunder or without following the principles of natural justice, set aside the said proceedings or order and direct the assessing authority to make a fresh assessment and pass fresh proceedings or order in such manner as may be directed. In the application filed under section 16D before the Special Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber 25, 2006 and sent by RPAD on October 11, 2006. Therefore, there is no violation of principles of natural justice. Hence, the petition is rejected." As stated supra, the Special Committee while considering the records of the assessing officer, in respect of any proceeding or order under subsection (2) or (3) of section 12 or sub-section (1) or (2) of section 16, ought to have examined as to whether the proceeding or order is passed in violation of the provisions of the Act or Rules made thereunder or without following principles of natural justice. Scrutiny of the order made by the Special Committee does not indicate as to whether the committee has examined, the aspect as to whether, there was any violation of the provisions of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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