TMI Blog2022 (11) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the assessee concerned. Thereafter, a personal hearing shall be afforded, either physically or virtually, granting adequate opportunity to the dealer to put forth its objections. The Circular also envisages a request of the assessee for cross examination of the third party dealer and provides for such an opportunity of cross examination to be granted suo motu, if the Assessing Authority believes that it would be so appropriate. The assessment will thereafter be concluded within a period of 180 days from date of issue of show cause notice. Let this procedure be followed in the present matter as well. Show cause notice, as indicated in the Circular will be issued to the petitioner within a period of four (4) weeks from today with al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equest made. 5. Hence, a period of four (4) weeks from today is granted to the petitioner to pay the 15% of the disputed tax as volunteered. Upon payment thereof, the impugned order of assessment shall stand set aside. 6. The issue of mismatch has long plagued assessees and the Commercial Taxes Department and as early as in 2018, pursuant to several decisions of this Court, the Special Commissioner/Commissioner of Commercial Taxes had directed the Assessing Authorities to keep assessments relating to mismatch of particulars in abeyance till a proper and appropriate scheme be formulated for addressing this issue. 7. On 24.02.2021, a Circular has been issued bearing No.5/2021, wherein, the Principal Secretary/Commissioner, Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to reconcile the mismatch. The Hon'ble High Court has dismissed the review application in its order 2 cited with a direction to take earnest steps to resolve the mismatch issue and also directed to verify the details available in the departmental website to reconcile the mismatch and when it is not possible reconcile, then the dealer may be put to notice and in such circumstances conciliatory approach shall be taken. 3. Hence the following procedure is evolved for all the pending and future litigations pertaining to mis-match issues. 3.1 Broad category of mis-match cases The mismatch between the purchasing and selling dealer in Annexure I and Annexure II of Form 1 return, prescribed under TNVAT Act, filed by them may fall in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fictitious and the input tax credit is passed on illegitimately by the bogus seller or by the buyer himself by manipulating the records, including misuse of TIN of registered dealer. 8. Circular transactions. 3.3 Procedure to be followed in the cases of Mis-match 3.3.1 The assessing authority who has raised the dispute of mismatch (herein after called as Original Assessing Authority) shall list out all such pending mismatch cases in respect of his/her assessment circle and report to the DC/JC as well as in the next statistics to be furnished after this circular comes into effect, for which suitable table is being prescribed and thereafter the report the progress every month. 3.3.2 The Original Assessing Authority shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evised returns or by issuing show cause notice and calling for the details from the dealer. After the receipt of reply and after due enquiry, the Other End Assessing Authority finds that the seller has reported the transaction and paid the tax due shall report the same to original Assessing authority and both of them shall drop further proceedings and on the other hand that if the whole or part of the transactions are not reported by the seller, then shall initiate assessment proceedings against the seller and shall pass appropriate orders in accordance with provisions of the TNVAT Act, 2006. The result of such action shall be reported to the Original Assessing Authority. 3.3.5 The Assessing Authority should issue show cause notice alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be issued for first time may get time barred by limitation. In those cases revision need not be resorted to and such cases may be reported to Joint Commissioner concerned to ensure whether limitation apply to such cases and decide accordingly. 5. In the cases where the claim of ITC is bogus made without any transfer of goods and such claim of ITC is circularly connected among several dealer, such cases may be referred to Commissioner of Commercial taxes to appoint a particular Assessing Authority to examine the transactions and pass orders so as to avoid multiplicity of proceedings and conflicting orders in respect of same transactions. 6. On implementation if any difficulty is experienced or any technical glitches or any other is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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