TaxTMI 
TaxTMI 
2016 (6) TMI 391
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.... the Delhi Value Added Tax Act 2004 ('DVAT Act') challenging the default notices of assessment of tax and interest dated 7th September 2015 under Section 32 of the DVAT Act passed by the Value Added Tax Officer ('VATO') for various quarters of the year 2013-14 and 2014-15 and default notices of assessment of penalty of the same date under Section 33 of the DVAT Act. The Petitioner also challenges the corresponding notices dated 11th August 2015 issued to the Petitioner under Section 59 (2) of the DVAT Act as being contrary to both the DVAT Act and the Central Sales Tax Act, 1956 ('CST Act'). 2. The Petitioner is functioning in the jurisdiction of the Assistant Commissioner VAT/Assessing Authority Ward No. 70 and is holding a TIN number. It is engaged in the business of trading in all kinds of fabric including imported fabrics. The Petitioner is also undertaking inter-state sales. It is, therefore, also registered under the CST Act since November 2011. The Petitioner states that it has been regularly filing its returns under both the CST Act and the DVAT Act. 3. The Petitioner states that during the years 2013-14 and 2014-15 it had been regularly filing ret....
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....1st quarter of 2014 11th August 2015 7th September 2015 17,00,880 W.P.(C) 11383/2015 3rd quarter of 2013 11th August 2015 7th September 2015 7,32,972 W.P.(C) 11384/2015 1st quarter of 2013 11th August 2015 7th September 2015 7,35,678 W.P.(C) 11556/2015 4th quarter of 2013 11th August 2015 7th September 2015 16,58,932 W.P.(C) 11557/2015 1st quarter of 2013 11th August 2015 7th September 2015 9,76,940 W.P.(C) 11558/2015 2nd quarter of 2014 11th August 2015 7th September 2015 7,63,457 W.P(C) 11559/2015 2nd quarter of 2014 11th August 2015 7th September 2015 6,69,619 W.P.(C) 11561/2015 2nd quarter of 2013 11th August 2015 7th September 2015 15,15,087 W.P.(C) 11562/2015 4th quarter of 2013 11th August 2015 7th September 2015 13,64,991 W.P.(C) 11639/2015 3rd quarter of 2013 11th August 2015 7th September 2015 9,17,922 W.P.(C) 11640/2015 2nd quarter of 2013 11th August 2015 7th September 2015 11,74,361 7. The reasons given in each of the notices is identical exce....
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....s, summons or orders by Value Added Tax (VAT) Authorities shall be issued to dealers by electronic means by pasting the same on the webpage of the individual dealers and that such manner of service shall be deemed to be service of the document/notice/order for the purposes of Rule 62 of the DVAT Rules. 12. It is further denied by the DT&T that the impugned assessment orders were framed by the Record Keeper and not by the concerned VATO. It is denied that VATO has not disputed that the transactions between the Petitioner and M/s. Rajesh Traders were interstate sales and that the impugned order was passed without application of mind. 13. The Court has heard the submissions of Mr. Vasdev Lalwani, learned counsel for the Petitioners, as well as Mr. Gautam Narayan, learned Additional Standing counsel for the Respondents. Alternative remedy 14. The first issue concerns the efficacious alternative remedy available to the Petitioner before the OHA by Section 74 of the DVAT Act. The Court finds, for reasons to be discussed hereafter, that there are obvious glaring errors in each of the impugned orders which appear to system generated and issued without application of mind. In the circu....
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.... sent, wherever a mobile number has been furnished to the Department. The documents shall also be emailed to the dealers, if the email id has been intimated by dealer to the department. (b) The documents so generated will be available on the department's website www.dvat.gov.in and will be accessible to dealers in their respective login ID. Such documents shall be deemed to have been issued and served for the purposes of Delhi Value Added Tax Act, 2004, Delhi Value Added Tax Rules, 2006 and the Central Sales Tax Act, 1956." 17. In addition in para 2 of the said Order, it has been provided that as soon as the document was issued by the VAT Authority, it would be available 'instantly' to the dealer for view that the dealer under the link 'Notices/Summons/Orders'. It states that as soon as the dealer logs on to its web page, a pop-up message will appear and after reading the 'document', the dealer shall click on 'ok' button available at the end of the notice, as a proof of reading the document. Afterwards, the dealer may access other links. It is then stated "the manner of service, shall be deemed to be a service of document for the purpose....
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....omputer resource, receipt occurs at the time when the electronic record is retrieved by the addressee, (b) If the address has not designated computer resource along with specified timing, if any, receipt occurs when the electronic record enters the computer resource of the addressee. (3) Save as otherwise agreed to between the originator and the addressee; an electronic record is deemed to be dispatch at the place where the originator has his place of business, and is deemed to be received at the place where the addressee has his place of business. (4) the provisions of Sub-section (2) shall apply notwithstanding that the place where the computer resource is located may be different from the place where the electronic record is deemed to have been received under sub -section(3). (5) For the purposes of this section, - (a) if the originator or the addressee has more than one place of business, the principal place of business, shall be the place of business; (b) if the originator or the addressee does not have a place of business, his usual place of residence shall be deemed to be the place of business; (c) 'usual place of residence', in relation to a body....
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....there is no proper service on it of the said notices under Section 59 (2) of the DVAT Act. Notices not issued by the Record Keeper 22. The next contention that has been raised concerns the events leading to the passing of the impugned default notices of assessment of tax, and interest as well as penalty. The Petitioner had access to the notings on the file with the DT&T and on that basis it is sought to be contented that the order has been issued not by the VATO concerned but by the Record Keeper. The above contention is vehemently denied by the DT&T. 23. The Court has perused the said notings on the file. While there is a noting signed by the Record Keeper that reads: "default assessment orders and penalty framed under Section 32 and 33", there is nothing beyond that to suggest that it was the Record Keeper who framed such orders. It is plausible that the Record Keeper was merely noting the fact of the notices having been framed. From this it is not possible to infer that the impugned notices of default assessments of tax, interest and penalty were issued by the Record Keeper and not by the VATO. Default assessments unsustainable in law 24. The central issue in these ....