TMI Blog2018 (3) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, relegating the petitioner to Appellate Forum would not be appropriate in rendering the substantial justice. Hence this court is of the considered view that justice would be sub-served in remanding the matter to the Prescribed Authority setting aside the impugned re-assessment order and demand notices. The matter is remanded to the Prescribed Authority to re-do the re- assessment by providing an opportunity of hearing to the petitioner in accordance with law in an expedite manner - petition allowed by way of remand. - Writ Petition No. 10776/2018 (T-RES) - - - Dated:- 13-3-2018 - MRS. S. SUJATHA J. Petitioner: [By Sri N. Venkataraman, Senior Counsel a/w Sri Tushar Jaswar, for Sri Raghuram Cadambi Sri C.K. Nandakumar, Advs.] Respondents [By Sri T.K. Vedamurthy, AGA.) O R D E R Petitioner has called in question the legality and correctness of the reassessment order dated 21.12.2017 and the notice of demand of even date, inter alia, challenging the rectification order dated 5.3.2018 at Annexures-G, H R respectively. 2. Petitioner, M/s. Clix Finance India Pvt. Ltd., formerly known as M/s. GE Capital Services India Limited, is engaged in lending an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perverse as it is apparent and clear from the invoices that the name of the petitioner is clearly mentioned as lessor. The basis for fastening the huge tax liability of ₹ 5,79,55,138/- with penalty of ₹ 57,95,514/- and interest of ₹ 5,29,59,732/- amounting to ₹ 11,67,10,384/- is arbitrary and unsustainable. In order to point out the mistake committed by the Prescribed Authority in not appreciating the invoices raised by the selling dealer in a proper perspective, which was apparent on the face of the record, rectification application was filed along with the copies of 574 invoices, particulars of the same coupled with the details for showing names of lessor and lessee in the invoices, letter of the selling dealer disclosing the collected output tax remitted to the Government, particulars of the lessee, agreement executed with the lessee, registration of the vehicles to be made in the name of the employees of the lessee- company, details of the rental receipts, tax amount paid on the lease rentals etc., However, the Assessing Authority without appreciating the same, in a brazen manner, held that the credit is not available to the petitioner. None of these doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2018 directing the respondent-Prescribed Authority to delete the tax, interest and penalty restricting the entire input tax claimed by the petitioner and to issue revised demand notice after considering the payments made, if any. In view of the appeal being allowed, the stance of the Prescribed Authority requires to be interfered with. It is submitted that in the circumstances, relegating the petitioner to the Appellate forum would defeat the purport of the Act giving a premium to the Prescribed Authority to arbitrarily demand the tax, interest and penalty without assigning any reasons muchless valid reasons. It is submitted that the procedure adopted by the authority in the decision making process warrants interference. Learned counsel has placed reliance on the Division Bench Judgment of this court in the case of Paharpur Cooling Towers Ltd. v- Asst. Commissioner of Commercial Taxes (Audit), Yeshwanthpur, Bangalore and another reported in 2015 (86) VST 546. 7. Learned Addl. Government Advocate appearing for the respondent referring to the decision of co-ordinate Bench of this court in the case of M/s TTP Technologies Pvt. Ltd. v- State of Karnataka in W.P.No.57922-933 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee company. It is apt to refer to the reasons assigned by the Prescribed Authority in one paragraph for denying the input tax credit which reads thus: Further, on verification of the purchase details submitted for the tax period April 2012 to March 2013 and input tax credit claimed, it is noticed that purchases are not effected by the assessee company, as the purchasing dealers are shown in different names and not the assessee company in the purchase invoices. As such, the assessee company is not eligible to avail the input tax credit. The dealer who effected purchases by him from local registered dealers, on such purchases the assessee is eligible to avail input tax credit and the invoices must in the name of the purchasing dealers. In the instant case, it is evident that none of the purchases are in the name of the assessee company, as such, the assessee company is not eligible for input tax credit on the purchases declared by them. Hence, as already proposed in this office notice dated 28.10.2017, entire input tax credit availed by the assessee company is restricted and the re-assessment proceedings under Section 39[1] of the KVAT Act, 2003 for the tax period April ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Chief Justice T.S. Thakur in the Hon ble Supreme Court in the case of In Board of Control for Cricket v. Cricket Assn. of Bihar [(2016) 8 SCC 535], on the compliance with the principles of natural justice, has held as under:- Principles of natural justice, it is well settled, are not codified rules of procedure. Courts have repeatedly declined to lay down in a straitjacket, their scope and extent. The extent, the manner and the application of these principles depends so much on the nature of jurisdiction exercised by the court or the tribunal, the nature of the inquiry undertaken and the effect of any such inquiry on the rights and obligations of those before it. The extent of the application of the principles also depends upon the fact situation of a given case . 11. It is true that the co-ordinate Bench of this court has observed that the Judgment of Paharpur Cooling s case supra, is a judgment in persona and is not a Judgment in rem. However, it is categorically observed that it is a discretion vested with the court about entertaining the writ petition. From the aforesaid, it is crystal clear that principles of natural justice depends upon the fact situation of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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