Madras High Court
M/S.Udhayam Agro vs The Deputy Commercial Tax Officer on 10 March, 2021
WA.No.785 of 2021
In the High Court of Judicature at Madras
Dated : 10.3.2021
Coram :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
Writ Appeal No.785 of 2021 and CMP.No.4169 of 2021
M/s.Udhayam Agro, rep.by
its Proprietor M.Maha Kumar ...Appellant
Vs
The Deputy Commercial Tax Officer
(Main), Thiruthuraipoondi
Assessment Circle, Thiruthuraipoondi,
Tiruvarur District. ...Respondent
APPEAL under Clause 15 of the Letters Patent against the order
dated 03.12.2020 made in W.P.No.1931 of 2016.
For Appellant : Mr.K.Soundara Rajan
For Respondent : Mrs.G.Dhanamadhri, GA(T)
Judgment was delivered by T.S.SIVAGNANAM,J
We have elaborately heard Mr.K.Soundara Rajan, learned
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WA.No.785 of 2021
counsel for the appellant and Mrs.G.Dhanamadhri, learned
Government Advocate(Taxes) accepting notice for the respondent.
2. The writ appeal, filed by the dealer, is directed against the
order dated 03.12.2020 made in W.P.No.1931 of 2016.
3. In the said writ petition, the appellant challenged the revised
assessment order under Section 27 of the Tamil Nadu Value Added Tax
Act, 2006 (for short, the Act) for the year 2013-14. The main ground,
on which, the revised assessment order was challenged, was on the
basis that the revision had been done solely based upon the extract
from the official website of the other end dealer. The second ground
raised by the appellant was that the pre-revision notice dated
12.6.2015 was never served on the appellant.
4. A counter was filed by the respondent in the said writ petition
stating that the pre-revision notice was sent by registered post with
acknowledgment due and it was duly served.
5. The said writ petition was pending from the year 2016 and the
appellant also had the benefit of interim order of stay. When the
matter was finally heard, it was dismissed on the ground of availability
of an alternate remedy.
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WA.No.785 of 2021
6. We had an occasion to consider a similar issue in the case of
Mahindra & Mahindra Ltd. Vs. Joint Commissioner (CT)
(Appeals) [W.A.No.493 of 2021 dated 18.2.2021] and gave
reasons as to under what circumstances, the availability of alternate
remedy will not be an absolute bar to exercise jurisdiction under Article
226 of The Constitution of India.
7. We find in the instant case that there has been violation of the
principles of natural justice and the revision of assessment has been
done solely based upon the mismatch found in the returns filed by the
appellant and the other end dealer.
8. An identical issue was considered by one of us (TSSJ) while
sitting singly in the case of JKM Graphics Solutions Pvt. Ltd. Vs.
Commercial Tax Officer, Vepery Assessment Circle [reported in
(2017) 99 VST 343] and the matter had been remanded to the
Department for verification. We are now informed that the Department
has evolved a machinery, by which, reconciliation of the difference
would be done at the first instance by the Department themselves and
when the issue is not reconcilable, then a notice would be issued to the
dealer.
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WA.No.785 of 2021
9. Considering all these facts, we are of the view that one more
opportunity can be granted to the appellant to go before the Assessing
Officer to file their objections and thereafter, the Assessing Officer
shall do necessary verification in terms of the circular issued by the
Principal Commissioner and Commissioner of Commercial Taxes as to
how to deal with cases where there is a 'mismatch'.
10. Accordingly, the writ appeal is allowed and the impugned
order is set aside. The writ petition is also allowed and the matter is
remanded to the respondent for a fresh consideration. The appellant is
directed to submit their objections by treating the assessment order
dated 14.7.2015 as a show cause notice and place all the relevant
records. Thereafter, the respondent shall proceed in accordance with
law. Till fresh orders are passed, no coercive action shall be initiated
against the appellant. No costs. Consequently, the connected CMP is
closed.
10.3.2021
To
The Deputy Commercial Tax Officer (Main), Thiruthuraipoondi
Assessment Circle, Thiruthuraipoondi, Tiruvarur District.
RS
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WA.No.785 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
RS
WA.No.785 of 2021 &
CMP.No.4169 of 2021
10.3.2021
https://www.mhc.tn.gov.in/judis/
