TaxTMI 
TaxTMI 
2022 (8) TMI 57
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....e been filed by manufacturers of footwear and relates to various periods of assessment i.e.2010-2011, 20112012, 2012-2013, 2013-2014, 2014-2015 & 2015-2016. The petitioners were visited with inspection by the officials of the enforcement section of the Commercial Taxes Department. 2.The inspection, according to the respondents, revealed certain fallacies and flaws in the pricing mechanism adopted by the petitioners. Prima facie, the officials of the Enforcement Department appear to have been of the view that the petitioner has undervalued its products and consequently the pricing so as to avail the benefit of statutory exemption that it claims. 3.To be noted that Entry-30/Part B/Schedule-IV of the Tamil Nadu Value Added Taxes Act, 2006 (i....
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....fic provision, providing for assessment of sales turnover shown in the accounts, at low prices; that is to say, where the sales have been undervalued so as to gain an unfair benefit and evade payment of tax. 7.The petitioner responded to the notice, setting out details of the pricing mechanism followed by it. Objection dated 26.10.2018 was followed by yet another revision notice to which the petitioner responded by way of final objection, also seeking personal hearing. The petitioner was afforded personal hearing pursuant to which impugned order has come to be passed. 8.The order of assessment is, no doubt, detailed. Also undoubtedly, the Assessing Authority refers, for the first time in the concluding portion of the order, to Section 24 ....
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....on 27(1) of the TNVAT Act, 2006 S.No. Party Name W.P.No. Assessment Year Deemed Assessment Limitation under Section 27(1) Date of Revision of notice Date of Final Order 1. VKC Footcare 12997/2019 2010-11 VAT 30.06.2012 30.06.2017 20.09.2018 09.04.2019 2. VKC Footcare 12999/2019 2011-12 VAT 30.06.2012 30.06.2017 20.09.2018 09.04.2019 3. Ferrari Shoes 13195/2019 2011-12 VAT 30.06.2012 30.06.2017 20.09.2018 10.04.2019 12.The revision notices in relation to the above periods have been issued pursuant to the expiry of the limitation both under Sections 24 & 27 of the Act and since learned Additional Advocate General would, fairly, not dispute the dates, the impugned orders of assessment as above, are barred by li....
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....38 11.5 37.4 48.9 1034GENTS 282480 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 1035GENTS 157296 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 1036GENTS 828600 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 1037GENTS 30120 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 1038GENTS 358344 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 1039GENTS 46464 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 2003GENTS 12384 151 162.5 199.9 7.62 23.02 32.38 11.5 37.4 48.9 111LADIES 129660 144 158 219.5 9.72 38.92 52.43 14 61.5 75.5 107LADIES 139920 141 155 214 9.93 38.06 51.77 14 59 73 102LADIES 94680 137 148.5 199.9 8.39 34.61 45.91 11.5....
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.... In the discussion, the authority states that the pricing arrived at by a manufacturer should take into account expenses on advertisement, promotion and transport, royalty and other expenses that would have an impact upon the cost of production. 16. The petitioner has admittedly received royalty from the use of the brand 'VKC' and according to it, the royalty as well as the expenses enumerated by the officer have been taken into account by it, in arriving at the pricing. The petitioner is right in stating that apart from general observation on how proper is to be arrived at, there is nothing brought on record by the officer to support a conclusion that such factors have not been taken into account in arriving at the pricing. 17.Th....
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....Section 27, shall, as far as may be, apply to assessment or reassessment under sub-section (1) as they apply to the reassessment of escaped turnover under sub-section (1) of Section 27. 19.Section 24 of the Act has been enacted in pari materia with Section 12A of the Tamil Nadu General Sales Tax Act to address transactions that are not bonafide and have been consciously and willfully undervalued and understated with a view to evade payment of tax. In the present case, the argument of the revenue is that the petitioner has undervalued the transactions merely to obtain the benefit of exemption under Entry-30/Part-B/Schedule-IV of the Act. 20.To establish this, it is, firstly, to be shown that the enforcement visit revealed materials in supp....