Madras High Court
Tvl.Sun Reclaimery vs The State Tax Officer on 26 July, 2021
W.P(MD)No.24330 of 2019
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED :26.07.2021
CORAM:
THE HONOURABLE MRS.JUSTICE J.NISHA BANU
W.P(MD)No.24330 of 2019
and
W.M.P(MD)No.20947 of 2019
Tvl.Sun Reclaimery,
Rep. by its Partner R.Ramasamy ... Petitioner
Vs.
The State Tax Officer,
Thirupparankundram Assessment Circle,
Madurai – 20. ... Respondent
PRAYER: Petition filed under Article 226 of the Constitution of India,
praying for issuance of a Writ of Certiorari, calling for the records on the
file of the respondent in TIN No.33196231364/2007-08, dated
21.10.2019 and quash the same as illegal, without authority of law and
barred by limitation as prescribed under Section 27(1)(a) of the Tamil
Nadu Value Added Tax Act, 2006.
For Petitioner : Mr.A.Chandrasekaran
For Respondent : Mr.P.Thilak Kumar,
Government Advocate
1/8
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
ORDER
This writ petition has been filed by the petitioner seeking for
issuance of a Writ of Certiorari, calling for the records on the file of the
respondent in TIN No.33196231364/2007-08, dated 21.10.2019 and
quash the same as illegal, without authority of law and barred by
limitation as prescribed under Section 27(1)(a) of the Tamil Nadu Value
Added Tax Act, 2006.
2. The brief facts of the case are as follows:
(i)The petitioner is a dealer in Waste Oil and engaged in recycling
waste oil and an assessee on the file of the respondent under the Tamil
Nadu Value Added Tax Act, 2006 and the petitioner is regularly filing the
monthly returns before the respondent herein and paying the tax.
While the matter stood thus, the petitioner reported a total and taxable
turnover of Rs.60,26,758/- for the assessment year 2007-08 and the same
was accepted by the respondent. But, no order of assessment was passed
accepting the returns. As per proviso to Section 22(2) of the TNVAT Act,
as amended by the Amendment Act 23 of 2012, which came into effect
from 19.06.2012, the petitioner's original assessment for the assessment
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
year 2007-08 was deemed to be completed as on 30.06.2012.
(ii) The grievance of the petitioner is that for the assessment year
2007-08, the respondent issued a pre-revision notice dated 02.07.2013
and to the said notice, the petitioner submitted a detailed reply along with
supporting documents and prayed to drop the proposals. The respondent
also after going through the materials submitted by the petitioner
dropped the proposals and passed an order on 27.09.2013 accepting the
petitioner's objections. However, after five years of period, on
27.08.2019, issued a notice proposing to levy tax @ 12.5% on a turnover
of Rs.1,05,453/- on the ground that as per TANGEDCO Desk Audit
report for the year 2015-2016, the petitioner had made purchase for the
month of May, 2007, to the turnover of Rs.1,05,453/-. To the said notice,
the petitioner vide letter dated 24.09.2019 sought for time to submit their
reply and objections. Subsequently, the respondent issued a revised
notice dated 26.09.2019 without furnishing the TANGEDCO Desk Audit
report for the year 2015-16, which is the sole basis for the proposed
revision of assessment. To the said notice also, the petitioner filed his
detailed objections vide letter dated 14.10.2019 stating that the revision
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
of assessment under Section 27 of the TNVAT Act, is barred by limitation
and relying on various judgments of this Court. However, the respondent
without considering the objections raised by the petitioner, confirmed the
proposals vide the impugned proceedings. Hence, this writ petition.
3. The learned counsel for the petitioner would submit that Section
27(1)(a) of the TNVAT Act, provides for the assessment of escaped
turnover at any time within a period of six years from the date of order of
final assessment by the assessing authority. However, in the petitioner's
case, final assessment for the year 2007-08 under the TNVAT Act was
deemed to be completed on 30.06.2012 as per proviso to Section 22(2) of
the TNVAT Act as amended by the Amendment Act 23 of 2012, which
came into effect from 19.06.2012 and therefore, as per the provisions of
Section 27(1)(a) of the TNVAT Act, a revised order of assessment for the
subject assessment year ie., 2007-08, if any, ought to have been passed
on or before 30.06.2019 and not beyond that date. However, the order
impugned in this writ petition is dated 21.10.2019 and the same has been
passed after the expiry of the limitation prescribed under Section 27(1)(a)
of the TNVAT Act and therefore, the same is liable to be set aside and
prays for appropriate orders.
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
4. The learned Government Advocate is not able to dispute the
contention of the writ petitioner.
5. The petitioner has challenged the impugned order mainly on the
ground of limitation. Perusal of the records shows that the original
assessment order for the year 2007-2008 was deemed to be completed on
30.06.2012 as per proviso to Section 22(2) of the TNVAT Act as
amended by the Amendment Act 23 of 2012 and any revision of
assessment can be made only prior to 30.06.2012 as per Section 27(1)(a)
of the TNVAT Act. However, the impugned order of assessment has been
passed by the respondent on 21.10.2019 ie., after a lapse of more than
seven years and the same is beyond the limitation period and therefore,
the same is liable to be set aside.
6. In the result, the writ petition is allowed and the order of the
respondent in TIN No.33196231364/2007-08, dated 21.10.2019, is
hereby set aside. No Costs. Consequently, connected miscellaneous
petition is closed.
Index :Yes/No 26.07.2021
Internet :Yes/No
pm
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
Note:
(ii) In view of the present lock down owing
to COVID-19 pandemic, a web copy of the
order may be utilized for official purposes,
but, ensuring that the copy of the order that
is presented is the correct copy, shall be the
responsibility of the advocate/litigant
concerned.
The State Tax Officer,
Thirupparankundram Assessment Circle,
Madurai – 20.
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.24330 of 2019
J.NISHA BANU,J.
pm
W.P(MD)No.24330 of 2019
26.07.2021
https://www.mhc.tn.gov.in/judis/
