2019 (5) TMI 803 - HC - VAT and Sales Tax

Appellate Authority to Review Form-C Declaration Validity, No Coercive Tax Action

Tvl. SPX Thermal Equipment and Services India Pvt. Ltd. Versus The Assistant Commissioner (CT)

The court directed the Appellate Authority to independently review all documents, consider the transaction's nature, and decide on the Form-C ... Validity of assessment order - principles of natural justice - entitlement to avail the benefit of concessional rate of tax by filing Form-C declaration - tripartite agreement - whether inspite of the triparte agreement between the parties and the names of the parties shown in the invoices, was the Assessing Officer justified in solely relying upon the endorsement “Self” in the column “assessee name and address.”? HELD THAT:- The totality of the transaction is to be considered and not a single line appearing in the lorry way bill. Therefore, the Appellate Authority should consider the entire matter in an independent manner without solely being guided by the observations made by the Assessing Officer and if the same is not complied with, then it would amount to abdicating the powers of the Appellate Authority. While affirming the order passed by the learned Single Bench directing the appellant to go before the Appellate Authority, we direct the Appellate Authority to independently pass an order after all the documents are produced by the appellant and then consider the nature of transaction and if satisfied, extend the benefit of the Form-C declaration which has been filed by the appellant - appeal disposed off. Issues:Challenging assessment orders under Central Sales Tax Act and Tamil Nadu Value Added Tax Act, 2006, regarding entitlement to concessional rate of tax based on Form-C declaration.Analysis:The appellant challenged assessment orders under the Central Sales Tax Act and the Tamil Nadu Value Added Tax Act, 2006, for the assessment year 2015-16, claiming errors in the orders. Initially, the appellant filed writ petitions challenging these orders, arguing against the assessment process under both acts. The court disposed of the writ petitions, directing the appellant to file an application under Section 84 of the TNVAT Act, instructing the Assessing Officer to consider it and pass a speaking order in accordance with the law.The appellant subsequently filed a petition under Section 84 of the TNVAT Act, which led to a notice being issued by the Assessing Officer for a personal hearing. The Assessing Officer then passed an order challenging the application filed under Section 84. The appellant contended that the Assessing Officer should have accepted the Form-C declaration submitted and not solely relied on the lorry way bill. The court examined the documents presented, highlighting the complexity of the issue due to agreements between the parties involved and the nature of the transactions.The court emphasized the need for a factual examination to determine the appellant's entitlement to the concessional rate of tax based on the Form-C declaration. It stated that a writ petition was not the appropriate forum for a detailed factual analysis, agreeing with the single bench's decision. The court directed the Appellate Authority to independently review all documents, consider the transaction's nature, and decide on the Form-C declaration's validity. The appellant was instructed to file a statutory appeal within four weeks, and no coercive action for tax recovery was to be initiated by the respondent until then.In conclusion, the writ appeal was disposed of without costs, with the connected miscellaneous petition closed. The judgment stressed the importance of a comprehensive review by the Appellate Authority regarding the appellant's entitlement to the concessional rate of tax, based on the documents presented and the transaction details.