Madras High Court
Sankara Traders vs The Commercial Tax Officer (St) on 25 August, 2021
W.P.No.17492 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 25.08.2021
CORAM
THE HONOURABLE MR.JUSTICE M.SUNDAR
W.P.No.17492 of 2021
&
W.M.P.No.18584 of 2021
Sankara Traders
Represented by its Proprietor
Saurabh Munot
64/1, Bazaar Street
Chimdambaram – 608 001 ... Petitioner
Vs.
The Commercial Tax Officer (ST)
(State Tax Officer)
Chidambaram-1 ... Respondent
Writ petition filed under Article 226 of the Constitution of India
for issuance of writ of certiorarified mandamus calling for the records on
the files of the respondent herein in TIN-33774442559/2014-15 dated
7.7.2021 quashing the same with the direction to furnish Xerox copies of
D-7 records referred to in the impugned order along with the opportunity
of being heard.
For Petitioner : Mr.N.Inbarajan
For Respondent : Mr.T.N.C.Kaushik
Government Advocate
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W.P.No.17492 of 2021
ORDER
Read this in conjunction with and in continuation of earlier
proceedings made on 23.08.2021 in the captioned main writ petition and
'Writ Miscellaneous Petitions' ('WMPs' in plural and 'WMP' in singular
for the sake of brevity, convenience and clarity) therein, which reads as
follows:
'Mr.T.N.C.Kaushik, learned State counsel accepts
notice on behalf of sole respondent.
2. List in the motion list day-after-tomorrow i.e,.
25.08.2021.'
2. Learned Revenue counsel says, he has since obtained
instructions. This Virtual Court with the consent of learned counsel for
writ petitioner Mr.N.Inbarajan and learned Revenue counsel
Mr.T.N.C.Kaushik, takes up the main writ petition as the entire matter
turns on a very narrow compass.
3. Short facts shorn of elaboration will suffice. Short facts are
that the writ petitioner is an authorized distributor of wet and dry X-Ray
films and that writ petitioner is registered under 'Tamil Nadu Value
Added Tax Act, 2006' ('TNVAT Act' for the sake of brevity) and there
was deemed assessment; that the enforcement wing of respondent
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W.P.No.17492 of 2021
Department recovered D-7 forms resulting in assessment under Section
27 of TNVAT Act on the ground that it is assessment of escaped turn
over; that the order made under Section 27 of TNVAT Act has been
called in question inter alia on the ground that Narasus principle being
ratio in Tvl.Narasus Roller Flour Mills Vs. The Commercial Tax
Officer (Enforcement Wing), Sankagiri reported in 2015 81 VST 560
which inturn was made by following an earlier Hon'ble Division Bench
judgment in Madras Granites Private Limited Vs. CTO., reported in
146 CTC Page No.642 has been given a go by; that it is to be noted that
this principle is to the effect that the Assessing Authority exercising best
judgment assessment qua alleged escaped assessment should not go
solely / blindly by the report of the Enforcement Wing officials and
should independently make an assessment.
4. As already alluded to supra, the entire matter turns on a very
narrow compass as two orders made by this Court [one by me and
another by Hon'ble Justice Dr.Anita Sumanth] in Ponny Stores Vs. The
State Tax Officer (dated 22.07.2019) and Gayathri Agency Vs.
Assistant Commissioner (ST) (dated 24.02.2021) respectively, under
similar circumstances are directly and squarely applicable to the case on
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W.P.No.17492 of 2021
hand. This Court is informed without any disputation or disagreement
that aforesaid two orders in Ponny Stores and Gayathri Agency cases
have not been carried in appeal by way of intra-court appeals and they
have been given quietus. This Court is also informed without any
disputation or disagreement that the orders and directives therein have
since been complied with.
5. Therefore, on the short point of Madras Granite and
Narasus principles infraction, captioned writ petition is disposed of by
passing the following order:
a) The impugned Assessment order dated
7.7.2021 bearing reference TIN-33774442559/2014-15 is
set aside;
b) The impugned Assessment Order is set aside
solely on the ground of infraction of Narasus and
Madras granite principles (not making the assessment
independent of the Enforcement Wing report) without
expressing any view or opinion on the other aspects of the
matter;
c) The respondent shall furnish photocopies of
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W.P.No.17492 of 2021
the D-7 records referred to in the impugned order to the
writ petitioner under due acknowledgement on or before
15.09.2021.
d) Post furnishing the aforementioned
photocopies i.e., post 15.09.2021, Respondent shall make
the assessment afresh independent of the proposals given
by the Enforcement Wing in tune with Madras Granite /
Narasus principle.
e) The assessment afresh shall be made on its
own merits and in accordance with law.
f) The aforesaid exercise of assessment afresh
shall be completed as expeditiously as the business of the
respondent would permit, but in any event within two
months from 15.09.2021 i.e., on or before 15.11.2021.
Writ petition is disposed of on above terms. Consequently,
WMP is also closed. There shall be no order as to costs.
25.08.2021
Index: Yes/no
Internet: Yes/No
gpa
http://www.judis.nic.in
W.P.No.17492 of 2021
M.SUNDAR.J.,
gpa
To
The Commercial Tax Officer (ST)
(State Tax Officer)
Chidambaram-1
W.P.No.17492 of 2021&
W.M.P.No.18584 of 2021
25.08.2021
http://www.judis.nic.in
