2019 (7) TMI 455 - HC - VAT and Sales Tax

Revised Assessment Orders Quashed for Non-Compliance: Importance of Legal Principles in Tax Assessments

M/s. Daksh Agencies Versus The Commercial Tax Officer, The Assistant Commissioner (ST)

The court set aside the Revised Assessment orders in two cases due to non-adherence to the JKM Graphics Principle, directing the writ petitioners to ... Service of order - mode of service - petitioner contends that the Revisional notice preceding the impugned order has not been served on the writ petitioner - HELD THAT:- The impugned order is set aside solely on the ground of non-adherence to the principle of M/S. JKM GRAPHICS SOLUTIONS PRIVATE LIMITED VERSUS THE COMMERCIAL TAX OFFICER [2017 (3) TMI 536 - MADRAS HIGH COURT] - no view or opinion is expressed on merits of the impugned order. Petition disposed off. Issues:Revised Assessment Order under TNVAT Act not adhering to JKM Graphics Principle.Analysis:The judgment concerns a Revised Assessment order made under the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) that is being challenged for not adhering to the JKM Graphics Principle established in a previous case. The writ petitioner argued that the Revisional notice preceding the impugned order was not served on them, while the Additional Government Pleader contended that it was sent via Registered Post with acknowledgment due and received by the noticee. However, a dispute arose regarding the signature on the postal acknowledgment card, leading the court to refrain from deciding on this factual matter in a writ petition.The court noted that the facts of the current case mirrored those of an earlier order, indicating identical situations. As a result, the issue of the service of the Revisional notice was left open since the facts aligned with the previous case. The judgment extensively quoted paragraphs from the earlier order, emphasizing the importance of the JKM Graphics Principle in cases of mismatch in tax assessments. It highlighted the need for a detailed procedure and centralized mechanism to handle discrepancies before issuing show-cause notices to taxpayers.The court acknowledged that the writ petitioner did not respond to a second show-cause notice, but it remitted the matter back to the second respondent solely for not adhering to the JKM Graphics Principle. Despite other grounds raised in the petition, including jurisdictional issues, the court focused on the core issue of non-compliance with the established principle. Consequently, the impugned order was set aside, and the writ petitioner was directed to submit supporting documents for a reassessment in line with the JKM Graphics Principle.In a similar vein, another impugned order was set aside solely on the ground of non-adherence to the JKM Graphics Principle, with the writ petitioner instructed to provide necessary documents for a lawful reassessment. The judgment reiterated the importance of applying the JKM Graphics Principle in tax assessments and concluded both writ petitions without costs, emphasizing compliance with the established legal principles for tax revisions.