TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 857
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.... Added Tax Act, 2006 for the period 2014-15, all dated 04.03.2019. 2. The petitioner is a dealer and assails the assessments on several grounds including specifically that no opportunity was granted to it prior to framing of the impugned assessments. Admittedly, the assessments have been made based upon the returns filed by third party dealers as reflected in the website of the Commercial Taxes Department. Inter alia, the respondent has also obtained and utilised the data from check-posts as well as other connected records pertaining to other dealers. 3. The above third party material that the respondent proposes to use, adverse to the interests of the petitioner, have been referred to in the pre-assessment notices dated 23.03.2018 that h....
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....or addressing this issue. 8. On 24.02.2021, a Circular has been issued bearing No.5/2021, wherein, the Principal Secretary/Commissioner, Commercial Taxes has dealt with this issue in extenso. The entirety of the Circular is extracted hereunder: "Circular No.5/2021 LW10/12521/2016 Office of the Principal Secretary/ Commissioner of Commercial Taxes, Chepauk, Chennai - 600 005. dated: 24.02.2021 Circular Sub: TNVAT Act 2006 - Assessment made on the basis of computed generated mis-match report - Hon'ble Court direction in the case of JKM Graphics - Procedure to deal with such cases - circular issued - Regarding. Ref: 1. The orders of the Hon'ble High Court in W.P.No.105/2016 dated 01.03.2017. 2. The orders o....
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....iled by them may fall in the following categories: * ITC claimed by the purchaser does not match with the output tax due paid/payable by the seller; or * Mismatch of purchase/ sales transactions resulting in purchase and/or sales suppression; or * Mismatch of transactions because of a dealer whose registration To anolem certificate has been cancelled, * On verification of check post data, certain transactions are not reported, to 3.2 The possible reasons for the mis-match report The computer generated mismatch report can be classified as simple error as detailed in si no 1 to 5 below which could be rectified on verification and omission and evasion as detailed in sl no 6 to 8 below which require revision of assessment. 1. Cler....
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....ransaction report in the department intranet website (tnvat.gov.in) with reference to the data available at both the ends i.e., buyer and seller. On verification of the data, if the Original Assessing Authority could reconcile the mismatch and finds that the mismatch is due to clerical or inadvertent error the Assessing Authority shall pass appropriate orders dropping further action. 3.3.3 If the Original Assessing Authority is unable to resolve either the whole or part of the mismatch, then the Original Assessing Authority shall issue notice to the dealer concerned indicating the discrepancy with an opportunity to show cause to reconcile the same. After the receipt of reply and after due enquiry, the Original Assessing Authority finds th....
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....t seeking objections. On receipt of objections, the Assessing Authority shall fix a date and time of personal hearing (either physical or virtual hearing). The assessing officer shall grant adequate opportunity to the dealer to put forth their objections by duly following the principles of natural justice. During the course of enquiry, either on a request made by the assessee or suomotu, the Assessing Authority can summon the other end dealer and on request, a cross examination may be provided to the assessee if such dealer is available. However, if the dealer is non-existent the Assessing Officer may proceed to make an assessment on the basis of material on record in accordance with law. The entire process involving issue of show cause not....
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....mmissioner of Commercial Taxes so as to take appropriate suitable action. Sd/-M.A.Siddique Principal Secretary/ Commissioner of Commercial Taxes" 9. After referring to the verification to be undertaken by the Assessing Authorities in regard to the materials in his possession, at paragraph 3.3.5, the Assessing Authority is required to issue notice along with all details connected to the assessment and seek objections from the assessee concerned. Thereafter, a personal hearing shall be afforded, either physically or virtually, granting adequate opportunity to the dealer to put forth its objections. 10. The Circular also envisages a request of the assessee for cross examination of the third party dealer. It also provides for such an oppor....