Madras High Court
Tvl.Rajgaru Plywoods vs The Assistant Commissioner [St on 31 August, 2021
W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 31.08.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Mr.Justice SATHI KUMAR SUKUMARA KURUP
W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
and C,M.P.Nos.13541, 13546, 13548,
13578 & 13588 of 2021
Tvl.Rajgaru Plywoods,
Represented by its Proprietor,
S.Khimchand,
No.18, A.V.Iyer Street,
Shevapet, Salem – 2. ...Appellant in all appeals
Vs
The Assistant Commissioner [ST].
Shevapet Circle,
Salem. ...Respondent in all appeals
Appeals filed under Clause 15 of Letters Patent to set aside the
common order dated 24.02.2021 passed in W.P.Nos.10077, 10079, 10072,
10083 and 10089 of 2021.
For Appellant
in all appeals : Mr.R.Senniappan
For Respondent
in all appeals : Mr.M.Venkateshwaran
Government Advocate
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W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
COMMON JUDGMENT
(Delivered by T.S.Sivagnanam,J)
These writ appeals have been filed by the appellant, who is a
registered dealer on the file of the respondent under the Tamil Nadu Value
Added Tax Act ['the Act' for brevity], challenging the order dismissing the
writ petitions by common order dated 24.02.2021, in which the petitioner
challenged the correctness of the assessment orders for the assessment years
2010-2011 to 2014-2015.
2.Since orders were passed on different dates, namely, 15.06.2020,
16.06.2020, 17.06.2020 and 25.06.2020, separate writ petitions were filed.
3.The challenge to the assessment orders was on the ground that on
account of the fact that the selling dealer has not paid taxes cannot be a
ground to made addition in the assessee's books and demand tax from the
assessee. The appellant placed reliance on the decision of the Hon'ble
Division Bench in the case of Altaf Shoes (P) Ltd., vs. Assistant
Commissioner (CT), Valluvarkottam Assessment Circle, Chennai [(2012)
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W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
50 VST 179 (MAD)]. Reliance was also placed on the decision in the case
of Sri Vinayaga Agencies vs. Assistant Commissioner (CT),
Vadapalani-I Assessment Circle, Chennai and another [(2013) 60 VST
283(MAD)]. The appellant contended that pursuant to the inspection,
notice was issued to the appellant stating that taxes have not been paid in
respect of certain transactions effected by them. According to the appellant,
these details were based upon the turnover which is reported by the selling
dealer and the Assessing Officer alleged that there is a mismatch. This
ultimately led to the assessment orders being passed on 08.09.2017. The
appellant challenged those orders by filing W.P.Nos.30305 to 30309 of
2017. Those writ petitions were allowed by common order dated
24.11.2017 by directing the appellant to furnish the necessary records so as
to enable them to file their objections.
4.The appellant's case is that the objections which were filed on
20.07.2015 itself would hold good and would cover all the submissions and
requested the Assessing Officer to consider the documents produced by
them and then take a decision. The Assessing Officer records that in spite
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W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
of opportunity of personal hearing being granted, the dealer has not filed
any objections pursuant to the notice dated 17.12.2020. However, we find
in the assessment orders in the preamble portion in reference No.2 dealer's
objections dated 20.07.2015 and 07.12.2016 have been set out. If according
to the appellant if the objections dated 20.07.2015 would hold good, then
nothing prevents the Assessing Officer from considering the objection and
taking a decision in the matter. In any event, if there is an issue regarding
the mismatch, the respondent should endeavour to adopt the machinery
evolved by the Sales Tax Department by conducting a verification process
by applying the circular issued by the Commissioner in this regard and if
certain transactions can be reconciled, they can be done so and thereafter the
assessee can be assessed for any escapement of turnover. Hence, we are of
th view that a more pragmatic approach is required to be adopted in the
matter both by the dealer as well as the Department. Considering the fact
that the assessment have been lingering and yet to attain finality from the
year 2015 onwards, we are inclined to grant one final opportunity to the
appellant to establish that they cannot be found fault for the alleged fault
committed by the selling dealer.
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W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
5.For all the above reasons, the writ appeals are allowed, order passed
in the writ petitions are set aside and there will be a direction to the
appellant to appear before the respondent on 14.09.2021 along with the
books of accounts this will be the final opportunity to the appellant to
establish his case. It is not sufficient for the appellant to merely refer to the
decisions alone but he should produce the books of accounts to prove the
genuineness of the stand taken by them in the objections dated 20.07.2015.
We give liberty to the appellant to give one more additional objection which
shall also be considered by the respondent. However, if the appellant fails
to avail such an opportunity, the benefit of this order will not enure to the
appellant and the writ appeals would stand automatically dismissed without
further reference to this Court and the liberty granted by the learned Writ
Court would stand restored. No costs. Consequently, connected
miscellaneous petitions are closed.
(T.S.S.,J.) (S.S.K,J.)
31.08.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
cse
Note: Issue order copy on 06.09.2021
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W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
T.S.SIVAGNANAM,J.
AND
SATHI KUMAR SUKUMARA KURUP,J.
cse
To
The Assistant Commissioner [ST].
Shevapet Circle, Salem.
W.A.Nos.2141, 2142, 2144, 2153 & 2158 of 2021
31.08.2021
https://www.mhc.tn.gov.in/judis/
