2015 (10) TMI 1573

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.... the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as TNVAT Act), is a dealer in PVC pipes and fittings and also electrical goods. The petitioner used to purchase PVC pipes and fittings from M/s Ashirvad Pipes Pvt. Ltd., Hosur, on payment of VAT and effect further sales inside the State. According to the petitioner, the PVC pipes and fittings are goods falling under Entry 100 of Part B of the I Schedule to the TNVAT Act, taxable at the rate of 5%. The petitioner's sale price inside the State is higher than the purchase price even after receipt of discount from the supplier M/s Ashirvad Pipes Private Limited. 3.2 According to the petitioner, during the assessment year 2013-14, the petitioner received turnover discount ....

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....ssued by the respondent on 11.03.2015. Admittedly, the petitioner did not file any objections. According to the learned counsel for the petitioner, without affording sufficient opportunity, treating the turnover relating to the discounts received, dehors the circular issued by the Commissioner of Commercial Taxes dated 04.11.2013, the respondent proceeded to levy tax on the disputed turnover. To that effect an order came to be passed on 03.07.2015, which is challenged herein. 5. The learned counsel appearing for the petitioner, referring to the Commissioner's Circular dated 04.11.2013, followed by a recent circular dated 11.08.2015, submitted that such an act of calculation of the turnover related to discounts is impermissible. 6.....

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....ly submitted that the respondent is duty bound to follow the circulars touching the matter in issue and could have granted appropriate relief to the petitioner. 9. This Court considered the submissions made by the learned counsel on either side and perused the materials available on record. 10. A perusal of the impugned order dated 03.07.2015, it is crystal clear that neither the circular of the Commissioner of Commercial Taxes dated 04.11.2013 nor the appropriate statutory provision viz., Section 19(20) of the TNVAT Act have been referred to. 11. It is also brought to the notice of this Court a Division Bench Judgment of this Court dated 05.08.2015 made in W.A.No.1038 to 1040 of 2015, wherein, the orders of dismissal on the ground....

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....tions, the respondent has not taken note of the same. Therefore, we are of the considered view that the impugned orders could be set aside and the matter sent back to the respondent for a fresh consideration. 14. Accordingly, the writ appeals are allowed and the orders of the learned Judge are set aside. The writ petitions are allowed and the impugned assessment orders passed by the respondent are set aside. The matter is remitted back to the respondent. The respondent shall take into account the Circular of the Commissioner dated 4.11.2013 and the orders of assessment dated 31.3.2015 passed in respect of M/s.Sree Laxmi Traders and pass orders afresh within a period of six weeks. No costs..". 12. In view of the above, the impugn....