Court dismisses petitions challenging tax assessments under Tamil Nadu VAT Act, directs filing of appeals within two weeks.

The court dismissed the writ petitions challenging assessment orders under the Tamil Nadu Value Added Tax Act for the periods 2010-11 to 2014-15 due to lack of justification for delay in filing. The court found concerns regarding compliance with natural justice principles as materials relied upon were not furnished to the assessee. The petitioner was directed to file appeals before the first Appellate Authority within two weeks, based on Supreme Court judgments allowing an extension for filing appeals. Consequently, the Writ Petitions were dismissed without costs, and connected Miscellaneous Petitions were also dismissed.

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Issues:
Challenge to orders of assessment under Tamil Nadu Value Added Tax Act, 2006 for the periods 2010-11 to 2014-15. Compliance with principles of natural justice regarding Input Tax Credit (ITC). Justification for delay in approaching the court. Previous judgment setting aside assessment orders. Discharge of burden by the Department in furnishing materials. Right to file appeals before the first Appellate Authority.

Analysis:

The petitioner contested orders of assessment dated June 2020 under the Tamil Nadu Value Added Tax Act, 2006 for the periods 2010-11 to 2014-15. The writ petitions challenging these orders were filed in April 2021 without any explanation for the delay. The impugned orders reversed the claim of Input Tax Credit (ITC) based on materials from dealers returns, raising concerns about compliance with natural justice principles as materials relied upon were not furnished to the assessee in most cases.

In a previous case, a learned single Judge set aside the original assessment orders and directed the Assessing Authority to provide details to the petitioner, hear objections, and redo the assessment. The petitioner was requested to file objections, and the Department claimed to have furnished relevant details from the Departmental website to the petitioner. Despite a personal hearing opportunity, the petitioner did not appear, leading to a lack of justification for interference under Article 226 of the Constitution of India.

The court found no grounds to interfere with the impugned orders and directed the petitioner to file appeals before the first Appellate Authority within two weeks. This direction was based on Supreme Court judgments extending the time for filing appeals. Consequently, the Writ Petitions were dismissed, granting liberty to file appeals, and no costs were imposed. Connected Miscellaneous Petitions were also dismissed as a result of this judgment.

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