2020 (9) TMI 4

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n of the facts involved, this Court was of the view that the case was a peculiar one in so far as the very basis of the assessment had been challenged by the petitioner. 2. The facts as recorded at the original instance are as follows: (i) There was an audit inspection in the premises of the petitioner/dealer and two audit slips had been issued during the months of November 2012 and June 2013. The audit slips were to the effect that the petitioner had engaged in high value transactions related to imports of mobile phones, indicating the petitioners' TIN and PAN numbers. The audit slips contained a direction to the Assessing Officer to take necessary action for finalization of assessment under the provisions of the TNVAT Act. (ii) Based on the direction contained in the audit slips, proceedings for assessment were commenced by the Assessing Officer alleging that no returns have been filed reporting turnover from the sale of the imports conducted. (iii) Since there was no response by the petitioner, the assessments were completed ex-parte. Thereafter the petitioner, upon receipts of the orders of assessment, sought information under the Right to Informat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ld the relief, sought for by the petitioner. Accordingly, both the Writ Petitions are allowed, and the impugned orders, dated 21.11.2016 are set aside. Consequently, the ex parte assessment orders, dated 21.03.2013 and 24.12.2013 are also set aside and the matters are remanded to the first respondent at the stage of the show cause notices. The first respondent is directed to ask necessary enquiries with the Customs Department, Income Tax Department and the Banks, viz., Kotak Mahindra Bank, Mylapore, Standard Chartered Bank, Rajaji Salai and DCB Bank, Broadway, where, transactions have been effected, and after receipt of the requisite information, the first respondent is directed to issue fresh show cause notice to the petitioner, and thereafter proceed with the matter in accordance with law. Considering the peculiar facts and circumstances, the second respondent is directed to disclose the information secured by them as and when a request is made by the first respondent. No costs. Consequently, connected Writ Miscellaneous Petitions are closed. 3. Pursuant to order dated 04.07.2017, the Assessing Authority issues notices dated 27.06.2019, the operative portion of which are as fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s made Credit/Debit transactions with the above Banks using current accounts as detailed below. 1.Kotak Mahindra, Mylapore Branch.C.A/c.413011022599, Transaction Period Transaction Details Deposit (Credit) Withdrawal (Debit) 24.11.2010 to 30.06.2011 By case Mobile Import Purchase and sales) 20,91,00,065.00 20,91,00,065.00 3.DCB Bnak Limited, Parrys Corner Branch, C.A/c. 09721300000550 Transaction Period Transaction details Deposit (Credit) Withdrawal (Debit) 30.06.2011 to 08.08.2011 By case (Mobile Import Purchase and sales) 3,56,19,420.00 3,56,18,476.00 3. Standard & Chartered Bank, Rajai Salai Branch, C.A/c. 42705479702 Transaction Period Transaction details Deposit (Credit) Withdrawal (Debit) 21.04.2011 to By case (Mobile Import Purchase and sales) 5,60,51,796.00 5,29,39,850.00 Total deposit in the Bankers : Rs. 29,76,58,391.00 Total withdrawal from the Bankers : Rs. 30,07,71,281.00 4. The Principal Commissioner of Customs (Air Cargo), New Custom House, Meenambakkam, Chennai - 600 027, Ref.F.No.S.Misc.13/2019-20-EDI-ACC dated 19.06.2019. The deal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uired to furnish detailed reply of the above proposal and objections if any to the above proposals before the undersigned in writing within fifteen days from the date of receipt of the notice failing which the proposals will be confirmed and Revision order passed accordingly. 5. The petitioner on 12.07.2019 responded to the notices specifically requesting for the details referred to in the pre-assessment notices and also an opportunity to cross-examine the officials alleged to have visited the business premises for opening bank accounts in their banks. An opportunity to cross- examine the customs broker was also sought. Reference was also made to the enquiry conducted by the Deputy Director of Income Tax (Investigation) and to a statement recorded by the Officer from the petitioner on 26.05.2015, after a visit to the Standard Chartered Bank to the following effect: 26.05.2010 6. According to the petitioner, the other banks were also visited by the Deputy Director, who had come to the same conclusion with respect to those banks as well and thereafter, the proceedings were dropped by the Income Tax Department. This assumption is drawn from the fact that nothing transpired af....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....KYC form and bank statements for the relevant period in the case of M/s.SRS Traders, A/c.No.42705479702 and also to Shri MP Ganesan who is the proprietor of the concern. In response to this summons, bank has furnished from containing Know Your Customer (KYC) and bank statement for the period starting from 20.04.2011 to 04.07.2011. Shri.Ganesan, at the time of hearing on 26.05.2015, filed a letter stating that he has not opened the bank account in M/s.Standard Chartered Bank, Rajaji Salai in the name of the M/s.SRS Traders and the signature found therein was not his own and he claimed that somebody else has misused his name. He further added that he had nothing to do with M/s.Cee Pee Enterprises. A notice u/s.131 was served on Standard Chartered Bank, Mylapore Branch, the bankers of M/s.CEE PEE Enterprises. In response to the summons, the bankers furnished copy of KYC and their bank statement from 28.02.2011 to 05.07.2011. On the basis of this information, the Inspector of this Unit has gone to the premises of Shri Abdul Rakheeb, the proprietor of M/s.Cee Pee Enterprises at No.2/39, Krishnan Kovil Street, Mannady, Chennai -1 but no such person was there and no such business....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ust 2017. 9. No counters have been filed by the respondents, despite sufficient opportunities having been extended to them. Mr.Santhanaraman, who had entered appearance on behalf of the Customs Department, arrayed as R2, only states that no relief has been sought as against the Customs Department and there is hence no necessity to file counter. Mr.Jayaprathap, learned Government Advocate only seeks some more time, which is a repetition of the requests made ad infinitum earlier. 10. I am thus not inclined to adjourn this matter any further but proceed on the basis of the facts available on record. A perusal of the impugned orders indicates that the directions of this Court in the first round of litigation have not been taken into account in proper perspective in finalizing the assessments. This Court had specifically directed that a proper enquiry be made by the Assessing Officer, which would not only include examination of all materials procured from the Customs and the Income Tax Department, but also on an independent application of mind of those materials and a proper and effective opportunity being extended to the petitioner to substantiate his repeated contention that ....