TaxTMI 
TaxTMI 
2024 (9) TMI 1708
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....e petitioner but have also confirmed the differential tax payable by the petitioner under Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as "TNVAT Act") but had also imposed penalty under Section 22(5) of TNVAT Act, 2006. 5. Extract of the differential tax and penalty confirmed in the respective Writ Petitions are as under:- W.P.No.6153 of 2021 (Assessment Year 2014-2015) Abstract: Tax Penalty Total Due Rs.13,74,947/- Rs.20,09,429/- Rs.33,84,376/- Paid Rs. 35,328/- Rs. 0/- Rs. 35,328/- Balance to be paid Rs.13,39,619/- Rs.20,09,429/- Rs.33,49,048/- W.P.No.6156 of 2021 (Assessment Year 2015-2016) Abstract: Tax Penalty Total Due Rs.2,48,084/- Rs.3,14,013/- Rs.5,62,097/- Paid Rs. 38,742/- Rs. 0/- Rs. 38,742/- Balance to be paid Rs.2,09,342/- Rs.3,14,013/- Rs.5,23,355/- W.P.No.6157 of 2021 (Assessment Year 2016-2017) Abstract: Tax Penalty Total Due Rs.21,30,317/- Rs.25,12,113/- Rs.46,42,430/- Paid Rs. 4,55,575/- Rs. 0/- Rs. 4,55,575/- Balanc....
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....h. Hence, the impugned order is set aside and the Writ Petition is allowed. However, there will be no order as to costs. Consequently, the connected Miscellaneous Petition is also closed." 9. In KAG India Private Limited's case (cited supra), the Writ Court presided over by another learned Single Judge of this Court has taken a view that assessment under Section 22(4) of TNVAT Act, 2006 can be availed at any time within the limitation period prescribed under Section 27 of TNVAT Act, 2006 i.e., six years. Relevant observation of the Writ Court in KAG India Private Limited's case (cited supra) reads as under:- "48. Thus, at the first instance, an order of deemed assessment under section 22(2) can be a point of initiation for revision of assessment under section 27 of the Act. If a written, speaking order is passed under section 22(2), such order of assessment under section 22(2) can also be a point of initiation for revision of assessment under section 27 of the Act. If no return is submitted by the dealer for any period of the year or if the return filed is in complete or incorrect, or if not accompanied with any of the documents prescribed or proof of payments o....
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....any reason, the whole or any part of the turnover of business of a dealer has escaped assessment to tax, the Assessing Authroity may at any time within a period of six years from the date of Assessment and subject to the provisions of subsection (3), redetermine to the best of its judgment the turnover which had escaped assessment and assess the tax payable on such turnover after making such enquiry as it may consider necessary. 14. It is further submitted that under Section 27(1)(b) of TNVAT Act, 2006 also where, for any reason, the whole or any part of the turnover of business of a dealer has been assessed at a rate lower than the rate at which it is assessable, the Assessing Authority may, at any time within a period of six years from the date of assessment, reassess the tax due after making such enquiry as it may consider necessary. 15. In these cases, we are not concerned with the situations covered under Section 27 of TNVAT Act, 2006. The decision of this Court in Tvl.Pupa Lineraa (cited supra) holds the reassessment under Section 27 of TNVAT Act, 2006 is different from the proceedings under Section 22(4) of TNVAT Act, 2006. It was however held that proceedings under Se....
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....nt dated 18.06.2012. Prior to the aforesaid amendment, Sub-Section (2) to Section 22 of TNVAT Act, 2006 read as under:- "22. Procedure to be followed by assessing authority.- (1) ..... (2) The assessing authority shall accept the returns submitted for the year, by the dealer, if the returns are accompanied by the proof of payment of tax and the documents prescribed, and on such acceptance, the assessing authority shall pass an assessment order." 21. Sub-Section (4) and Sub-Section (5) to Section 22 of TNVAT Act, 2006 which are relevant for the purpose of the present cases read differently before the amendment in 2012 vide Tamil Nadu Value Added Tax (Fifth Amendment) Act, 2012 (Tamil Nadu Act 23 of 2012). 22. Under Sub-Section (4) to Section 22 of TNVAT Act, 2006, an Assessing Authority shall, after making such inquiry as it may consider necessary, assess a dealer to the best of its judgment, subject to such conditions as may be prescribed. Sub-Section (4) to Section 22 was also amended by the Tamil Nadu Value Added Tax (Fifth Amendment) Act, 2012 (Tamil Nadu Act 23 of 2012). For the sake of clarity, these provisions are reproduced below:- 22(4) o....
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....y of penalty, a sum which shall be, one hundred and fifty percent of the difference of the tax assessed and the tax already paid as per the returns: Provided that no penalty under this sub-section shall be imposed after the period of six years from the date of Assessment Order unless the dealer affected has had a reasonable opportunity of showing cause against such imposition. Explanation:- For the purpose of levy of penalty under this sub-section, the tax assessed on the following kinds of turnover shall be deducted from the tax assessed under sub-section (4):- (i) Any turnover representing additions to the turnover as per the returns made by the Assessing Authority without reference to any specific concealment of turnover; (ii) Any turnover estimated by theAssessing Authority with reference to any specific concealment of turnover as per the returns; (iii) Any turnover on which tax is paid at the concessional rate subject to the condition of furnishing any declaration but where such declaration could not be furnished at the time of assessment 23. For the sake of clarity, date of notice under Section 22(4) of TNVAT Act, 2006 and re-assessment under Section 22(4) o....