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TMI Blog2019 (1) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... pective Assessing Officers under the provisions of Tamil Nadu Value Added Tax Act, 2006, and / or Central Sales Tax Act, 1956. All these writ petitions are filed challenging the revised assessment orders passed by the respective Assessing Officers, whereby and whereunder, the Input Tax Credit (hereinafter referred to as ITC) claimed by the petitioners were reversed. In some cases, the subsequent development, ie., the demand notice after such reversal is under challenge. As the issue involved in all these cases revolves around a common point, all of them are heard together and are disposed of by way of this common order. 2. All the petitioners have filed their returns for the respective assessment years, on time and the same has also been a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of JKM Graphics Solutions Pvt., Ltd., v. Commercial Tax Officer, Vepery Assessment Circle, Chennai, decided on 01.03.2017, the learned Counsel for the petitioners prayed for allowing the present writ petitions. 4. Learned Additional Government Pleader appearing for the Department, on the other hand, submitted that there were discrepancies between the returns filed by the dealers on either side and therefore, the petitioners were issued with show cause notices, for which, some of the petitioners responded and some of them did not turn up. After considering the objections, in full and after recording the non-filing of objections, the assessing officers have proceeded with the matter and passed the impugned orders. 5. Heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed entered in the notice and acknowledgement receipt obtained." 8. This aspect has been elaborately discussed by a learned Single Judge of this Court in the decision relied on by the learned Counsel for the petitioners in [2017] 99 VST 343 (Mad) (cited supra). In the said decision, this Court has pointed out the circumstances under which mismatches could occur and has also elaborately discussed about the procedure to be followed by the Assessing Officer. For better appreciation, the same is extracted thus: "... In cases where mismatch occurs, it is a starting point for an enquiry. The first phase of enquiry should be at the Department level, as in most cases, both the dealers are registered in different assessment circles. The Court has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uance of the show cause notices, has to conduct an enquiry into the matter, which has not been done so. 10. It is very unfortunate that the assessing officers have either totally ignored the Circular issued by the Commissioner of Commercial Taxes and the procedures, which were elaborately discussed in [2017] 99 VST 343 (Mad) (cited supra) or there has been partial compliance. 11. A sale includes two arms, one is the purchaser and the another is the seller. The default of the selling dealer in not filing returns or not paying tax at his end cannot result in the denial of credit to the purchasing dealer. If the selling dealer fails to pay tax, action has to be taken only against the selling dealer and not against the purchasing dealer. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the show cause notices, the petitioners have to make their objections. Thereafter, opportunity of personal hearing should be afforded to the petitioners, followed by which, the assessing officers shall pass appropriate reasoned orders, on merits and in accordance with law. The assessing officers shall complete the entire exercise within a period of eight weeks from the date of receipt of a copy of this order. Since all the cases are ordered to be decided afresh by the respective assessing officers, the petitioners are at liberty to agitate all the issues, including mismatch, on the basis of which the impugned orders were passed. It is also made clear that if the petitioners are dragging on the proceedings, by adapting delay tactics, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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