2017 (3) TMI 116 - HC - VAT and Sales Tax

Court directs reassessment, emphasizes detailed order provision.

The court set aside the impugned order and directed the assessing officer to redo the assessment. The petitioner's representative was instructed to ... Filing of declarations in Form C and Form F - production of bills of lading - high sea sales disallowance for illegible bills of lading - Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 - redo assessment - personal hearing - pass a speaking orderFiling of declarations in Form C and Form F - Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 - The petitioner is permitted to file and produce declarations in Form C and Form F at this stage and the assessing officer must consider them. - HELD THAT: - The Court noted that the petitioner states it possesses the relevant declarations in Form C and Form F and that the respondent did not contend that such declarations could not be filed at this stage. The Court referred to the explicit provisions of Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, which govern the filing of such declarations, and concluded that the proper course is to permit production and consideration of those declarations rather than relegating the petitioner to move under Section 84 of the 2006 Act. [Paras 4, 5]Declarations in Form C and Form F may be produced in original before the assessing officer and shall be considered.Production of bills of lading - high sea sales disallowance for illegible bills of lading - The disallowance of exemptions in respect of high sea sales, which was premised on the bills of lading being not 'visible', cannot stand without permitting production of the relevant bills of lading and fresh consideration. - HELD THAT: - The impugned order disallowed high sea sales on the ground that the bills of lading filed were not 'visible' (understood to mean illegible). Given that the petitioner offers to produce the relevant bills of lading in original, the Court found it appropriate to set aside the impugned order and allow the assessing officer to re-examine the question after actual inspection of the original bills of lading. The Court recorded that the assessment should be redone so that the correctness of the disallowance can be determined on proper consideration of the documents. [Paras 4, 5, 6]Impugned disallowance of exemptions for high sea sales is set aside and the assessing officer is directed to re-examine the matter on production of the original bills of lading.Redo assessment - personal hearing - pass a speaking order - The impugned assessment is set aside and remitted to the assessing officer to redo the assessment after affording a personal hearing and to pass a speaking order; a time and procedure for production is fixed. - HELD THAT: - In view of the petitioner's offer to produce original declarations and bills of lading, the Court set aside the impugned order and remitted the matter to the assessing officer to redo the assessment. The Court directed that the petitioner's authorised representative shall appear on the specified date (or a proximate convenient date fixed by the officer), the originals shall be presented, a personal hearing shall be afforded before any fresh order is passed, and the assessing officer shall pass a speaking order and furnish a copy to the petitioner's authorised representative. [Paras 6]Assessment set aside and remitted for fresh consideration; respondent to afford personal hearing and pass a speaking order after inspection of documents.Final Conclusion: The impugned order is set aside. The petitioner is permitted to produce in original the declarations in Form C and Form F and the relevant bills of lading; the assessing officer is directed to redo the assessment after affording a personal hearing and to pass a speaking order. The petition is disposed of in these terms. Issues involved:1. Opportunity to file declarations in Form C and F and produce relevant Bills of Lading.2. Tax demanded for goods covered by C Form and those not covered, exemptions claimed for stock transfer, and disallowed high sea sales.3. Proper remedy for the case regarding the disallowed exemptions and high sea sales.4. Setting aside the impugned order and directing the respondent/assessing officer to redo the assessment.Analysis:1. The petitioner sought an opportunity to file declarations in Form C and F and produce relevant Bills of Lading. The tax demanded for goods covered by C Form and those not covered was specified. Exemptions claimed for stock transfer and disallowed high sea sales were also mentioned, along with the corresponding tax amounts.2. The court noted that the respondent proceeded to disallow exemptions for high sea sales solely based on the visibility of bills of lading. The petitioner claimed to possess the necessary declarations and documents, which could be presented before the assessing officer.3. The court considered the submission made by the respondent's counsel regarding the possibility of filing a petition under Section 84 of the Tamil Nadu Value Added Tax Act, 2006. However, it was observed that such a petition may not be the appropriate remedy based on the circumstances of the case.4. The court set aside the impugned order and directed the respondent/assessing officer to redo the assessment. The petitioner's authorized representative was instructed to appear before the officer with the declarations in Form C and F, as well as the relevant Bills of Lading. The officer was given the liberty to fix a convenient date for the assessment and was directed to provide a personal hearing to the petitioner's representative before passing a fresh order. It was emphasized that the officer must issue a speaking order and provide a copy to the petitioner's representative.In conclusion, the writ petition was closed with the specified directions for the reassessment process, ensuring a fair opportunity for the petitioner to present the required documents and receive a well-reasoned order from the assessing officer.