2014 (9) TMI 565

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....ons is identical, it would suffice to take note of the facts in W.P(MD)No.6510 of 2013. The petitioners are dealers in cotton yarn and were assessed on a total and taxable turnover of Rs. 5,00,85,319/- for the assessment year 2006-07 under the Tamil Nadu Value Added Tax, 2006 (herein after referred to as TN VAT Act). Similar assessments were made for the assessment years from 2007-08 to 2011-12 and the total and taxable turnover varied for each other assessment year. On 10.2.2009, the Officers of the Enforcement Wing audited the place of business of the petitioners and it was noticed at the time of audit that there were several defects in respect of the assessment year 2006- 07. It was pointed out that the factory buildings were constructed....

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....ave the connected folio from their books which they undertook to produce at the time of special hearing to prove their stand effectively. Similarly, with regard to the leased machinery, it was stated that they are only the lessee and not the lessor and lessor to receive the lease rent, is only liable to pay appropriate tax under section 4 of the TN VAT Act. The copy of the lease agreement was produced along with the objections filed by the petitioners. Therefore, it was submitted that the proposals to revise the turnover is arbitrary and against the provisions of the Act. As regards the levy of penalty under Section 27(3) of the Act, it was submitted that penalty is not automatic and it is leviable only in case of wilful non- disclosure of....

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....irst reason the petitioners failed to produce the bills and books to the audit party and having not produced the same till the close of the audit, their contention cannot be accepted. So far as the ITC claimed on dyeing charges, it was held that the dealer has to fail to prove. It was further stated that though the petitioner have put forth all their explanations and reasons for omission, the same having been done only after the completion of audit on their account. The objection filed by the dealers is an after thought and therefore, they were rejected. 4. A perusal of the order of assessment makes it clear that none of the objections raised by the petitioners were considered item-wise. In certain cases, the petitioners requested for copi....

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....ssment notices specifically raising a contention in respect of each of the allegation in the notice. Therefore, the assessing authority bound to consider the objections item-wise and accept or reject the same or partially accept the same. However, by a three paragraphs order, the order of assessment has been finalized and the proposal in the pre-revision notice has been confirmed. 8. According to the department, the petitioners did not produce the records before the audit party. Nevertheless, a show notice has been issued by the Assessing Officer, in which, the petitioners should be given an opportunity to show-cause as to why the assessment should not be revised and while showing cause, it is always open to the petitioners to produce the ....