9911796707
TMI Blog2016 (10) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 (hereinafter called the TNVAT Act) and the Central Sales Tax Act, 1956, in ferrous and non ferrous metals and mainly in stainless steel. In these writ petitions, the petitioner has challenged the orders of assessment under the TNVAT Act for the assessment years from 2007-08 to 2014-15. 3. A VAT audit was conducted in the place of business of the petitioner by the officials of the Enforcement Wing on 10.12.2014, in which, certain defects were noticed and based upon a report submitted by the officials of the Enforcement Wing, the second respondent issued pre-revision notices dated 12.1.2016 for all the assessment years. In all the notices, three issues were pointed out namely (i) tax due on sale difference (ii) input tax credit rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner, vide objections dated 22.1.2016, which is common for all the assessment years, submitted that the entire purchases are covered by the original tax invoice as contemplated under Section 19(10)(a) of the TNVAT Act, that the same were duly reflected in the accounts and reported in the monthly returns and that no omission of purchases was found at the time of VAT audit. The petitioner further stated that in the absence of any such discrepancy, the proposal to reverse the input tax credit on the basis of an alleged verification, is against the principles of natural justice and fair play. Without prejudice to such a contention, the petitioner requested the second respondent to furnish the details of purchases such as bill numbers, date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in (2013) 59 VST 256] and Sri Vinayaga Agencies Vs. Asst. Commissioner (CT) [reported in (2013) 60 VST 283] and also other decisions on the said point. Without prejudice to such submissions, they requested for furnishing of break up details. 12. It appears that after receipt of the petitioner's objections, the second respondent furnished the details. With regard to the movement of goods, the petitioner had furnished documents along with their common reply dated 25.3.2016. The stand that the petitioner effected purchases from registration cancelled dealers was denied and supportive documents were placed for consideration before the second respondent. 13. While completing the assessments and passing the impugned orders, the second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss to understand as to how they would not be relevant for consideration while deciding issue No.2. 16. In so far as the issue pertaining to purchases effected from registration cancelled dealers is concerned, it is pointed out that all those cancellations were with retrospective effect and on the effective date, they were registered dealers. It is further brought to the notice of this Court that some of the dealers, whose registration was cancelled, approached this Court and those orders were set aside and the registration certificates were restored. The second respondent ought to have noted that the legal position with regard to this aspect has been considered in the case of Jinsasan Distributors, which decision was brought to the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apart, the second respondent, while completing the assessment, stated that in the absence of clarity, the petitioner's contention is not acceptable. This finding lacks clarity. 18. If the second respondent was of the view that there was lack of clarity, nothing prevented the second respondent from calling upon the dealer to appear in person and clarify the issues arising out of the documents, which they had submitted. In such circumstances, this Court is satisfied that the manner, in which, the impugned assessment orders have been passed, is not sustainable in law, more so, when the second respondent has not taken into consideration the law laid down by this Court in several decisions, one of which being in the case of Jinsasan Distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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