High Court sets aside assessment orders under TNVAT Act due to late objections. Petitioner directed to submit objections within 4 weeks.

The High Court of Madras set aside assessment orders under the Tamil Nadu Value Added Tax Act, 2006 for a petitioner who failed to timely file objections regarding proposed liabilities. The Court directed the petitioner to submit objections with supporting documents within four weeks and pay 15% of the disputed tax amount. Failure to comply would revive the impugned orders, while compliance would lead to re-adjudication by the respondent with a personal hearing for the petitioner. The Court emphasized the importance of timely objections and supporting documents for a fair assessment process under the TNVAT Act, closing the case without awarding costs.

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Issues:
Assessment proceedings under Tamil Nadu Value Added Tax Act, 2006 for two different assessment years - 2013-14 and 2014-15.

Analysis:
The High Court of Madras delivered a common order in two writ petitions concerning assessment proceedings under the Tamil Nadu Value Added Tax Act, 2006. The petitions, numbered W.P.Nos.13687 and 13688 of 2019, were disposed of jointly as the parties and facts were identical. The petitions involved a petitioner who was a retailer of Public Address Systems and an authorized dealer for specific brands. The Enforcement Wing Officers conducted a surprise inspection on the petitioner's premises, covering multiple assessment years, including those subject to the writ petitions. Subsequently, proposals were sent to the respondent regarding the petitioner's liabilities under the TNVAT Act, notably focusing on the reversal of Input Tax Credit. Despite being granted time to file objections, the petitioner did not do so, leading to the confirmation of the proposals by the respondent.

The petitioner later requested to submit objections with supporting documents, acknowledging the delay in filing objections. The Revenue Counsel emphasized the necessity of objections for an independent assessment, citing a legal precedent where objections were filed. The Court recognized the legal requirement for an independent assessment, irrespective of the Enforcement Wing Officers' proposals. Considering the circumstances and the petitioner's plea to file objections belatedly, the Court set aside the assessment orders and directed the petitioner to submit objections with supporting documents within four weeks, along with payment of 15% of the disputed tax amount. Failure to comply would result in the revival of the impugned orders. If objections and payment were made within the specified period, the respondent would re-adjudicate the matter and pass orders accordingly, ensuring a personal hearing for the petitioner.

In conclusion, the Court disposed of both writ petitions with the outlined directions, emphasizing the need for timely objections and supporting documents for a fair assessment process under the TNVAT Act. No costs were awarded, and connected miscellaneous petitions were closed as a result of the judgment.

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