TMI Blog2017 (9) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... in the revision notice, dated 14.09.2015, that the entire details have been culled out from the balance sheet and other documents produced by the petitioner - penalty set aside. The findings rendered by the respondent, in both the impugned assessment orders under the head Job Work Charges and Liability under Section 13 of the TNVAT Act are set aside and the matter is remanded to the respondent for fresh consideration - appeal allowed by way of remand. - W.P.Nos. 38734 & 38735 of 2015 M.P.Nos. 1 and 1 of 2015 - - - Dated:- 18-8-2017 - T. S. Sivagnanam, J. For the Petitioner : Mr. S. Ramanathan For the Respondent : Mr. K. Venkatesh ORDER Heard Mr. S. Ramanathan, the learned counsel appearing for the petitioner and Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk done, viz., Material outward register for quantity wise raw materials issued and inward register for receipt of manufactured garments and finished leather. In the absence of these records, it is not possible to examine the use of their own materials involved in the execution of job work. Hence it is proposed to assess the turnover of ₹ 26,37,599/- as purchase under Section 12 and to assess the same to tax at 4%. As per the fixed assets schedule annexed to the balance sheet, the assesses have effected construction of shed during the year 2010-11 and the contract value thereon worked out to ₹ 32,64,344/-. They have also effected addition of furniture and fitting to the tune of ₹ 1,76,658/- during this year. They hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details, it is proposed to treat the above turnover as work done by unregistered individuals and to levy and collect tax as TDS liable for recovery under Section 12 of TNVAT Act at 2% on civil work and at 5% on furniture and fixtures. 6. On receipt of the said proposal, the petitioner submitted the objections for both the years (2010-11 and 2011-12) which are mentioned herein below as A and B :- 'A' Job Work Charges paid ₹ 26,37,599/- : This includes payment of wages ₹ 9,88,020/- and payment for the supply of labour to the tune of ₹ 16,49,579/-, total ₹ 26,37,599/- There are no transfer of materials involved in these transactions. Copies of ledger accounts with invoices raised for the sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been in a position to examine the correctness of the stand taken by the petitioner, in their objections that there is no transfer of goods involved in the transactions. However, the respondent, while completing the assessment for the year 2011-12, proceeded on a totally different line and stated that the petitioner has not produced any 'affidavit', as noticed above. In the proposal made in the show cause notice, dated 14.09.2015, there was no direction issued to the petitioner to file an affidavit. When there is no such direction, the respondent could not have been proceeded on the basis that, since there is no affidavit filed, the stand taken by the petitioner cannot be believed. So far as the assessment order for the year 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 015, there was no mention for production of such records. Therefore, an opportunity could have been granted to the petitioner to substantiate their stand taken in the objections to the show cause notices. So far as levy of penalty is concerned, it is admitted by the respondent even in the revision notice, dated 14.09.2015, that the entire details have been culled out from the balance sheet and other documents produced by the petitioner . In these circumstances, the question of levy of penalty under Section 27 (3) and (4) of the Act does not arise and accordingly, levy of penalty is set aside. 9. Thus, for the reasons stated herein above, these Writ Petitions are partly allowed and the findings rendered by the respondent, in both the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
