2015 (10) TMI 2760 - HC - VAT and Sales Tax

Court sets aside assessment orders challenging trader's tax rate, penalty under VAT Act; petitioner granted opportunity for rectification

The court set aside the provisional assessment orders challenged by the petitioner, a registered trader under the Tamil Nadu Value Added Tax Act, for the ... Imposition of higher rate of tax - failure to file Form WW - TNVAT Act - HELD THAT:- Section 63-A of the Tamil Nadu Value Added Tax Act, 2006 empowers the authority to levy penalty for the belated submission of Form-WW. Accordingly, the petitioner has also paid the penalty amount. Now, the petitioner is inclined to file Form-WW for the purpose of completing the assessment in question relating to the turn over available in Form WW. The learned counsel appearing for the petitioner submitted that Form WW is very much available and the petitioner is ready to place before the authority within a time frame to be fixed by this court. The said submission is recorded. Since the petitioner has already paid penalty amount as contemplated under the provision of the Tamil Nadu Value Added Tax Act, 2006, this court is inclined to set aside impugned order and remit back the matter for fresh consideration with certain conditions - petition allowed by way of remand. Issues: Challenging provisional orders of assessment, Failure to file Form WW, Imposition of higher rate of tax and penalty, Remitting matter for fresh considerationIn this case, the petitioner, a registered trader under the Tamil Nadu Value Added Tax Act, challenged the provisional orders of assessment for the years 2012-13 and 2013-14 due to an alleged failure to file Form WW along with other relevant documents. The respondent imposed a higher rate of tax and penalty based on the turnover exceeding one crore. The petitioner contended that the failure to file Form WW should not disallow claimed exemptions, and tax should be levied based on the merits of the transaction. The court noted the authority's power to levy penalties for belated submission of Form WW under Section 63-A of the Act. The petitioner had paid the penalty and expressed readiness to file Form WW to complete the assessment. The court accepted the petitioner's submission and set aside the impugned order, remitting the matter back to the respondent for fresh consideration. The petitioner was granted two weeks to produce Form WW, following which the respondent would pass necessary orders after providing an opportunity for the petitioner to be heard. The court did not award costs, and the connected miscellaneous petition was closed.