Madras High Court
Tvl.Kani Industrial Works vs The State Of Tamil Nadu on 11 October, 2022
W.P(MD).No.1612 of 2020
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 11.10.2022
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P(MD).No.1612 of 2020
and
W.M.P(MD).No.1328 of 2020
Tvl.Kani Industrial Works,
Represented by its Karta: K.Thirumalaikani,
No.226-A, South Madurai Station Road,
Madurai-625 009. ... Petitioner
Vs.
1.The State of Tamil Nadu,
Represented by the
Secretary to the Government,
Fort St.George, Chennai-9.
2.The Commissioner of Commercial Taxes,
Ezhilagam, Chepauk,
Chennai-5.
3.The Assistant Commissioner (CT),
Kamarajar Salai Circle,
Madurai-20. ...Respondents
Prayer : Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Certiorari, calling for the records on the
file of the 3rd Respondent in TIN No.33984820598/2008-09, dated 04.11.2019
and quash the same as illegal, against the Principles of Natural Justice and
1/5
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W.P(MD).No.1612 of 2020
against the provisions of 19 of the Tamil Nadu Value Added Tax Act, 2006 as
substituted by Amendment Act 5 of 2015.
For Petitioner : Mr.A.Chandrasekaran
For Respondents : Mr.M.Prakash
Additional Government Pleader
ORDER
This writ petition is filed challenging the impugned order, dated
04.11.2019, wherein, the Petitioner was required to reverse Input Tax Credit
by invoking Section 19(5)(C) of the Tamil Nadu Value Added Tax Act.
2. The challenge is limited in the present petition on the premise that
the impugned order has been passed without setting out any reasons and
without affording personal hearing to the Petitioner, though a specific request
for personal hearing was made by the Petitioner in that regard.
3. A perusal of the impugned order shows that the order has been
passed in non-gross application of mind. The relevant portion of the
impugned order is extracted below:
“A notice was issued to the dealer on 25.01.2017, 22.01.2018
and 25.03.2019. The dealer have filed a reply on 15.04.2019. The
dealer's reply is verified very carefully along with connected records.
The dealer's reply is not acceptable. Hence, I therefore determined
the reversal of ITC and penalty as detailed below:-
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W.P(MD).No.1612 of 2020
Reversal of I.T.C.= 13,01,206 X 1,05,97,529 =Rs.4,53,559/-
3,04,03,052
Reversal of I.T.C : Rs.4,53,559/-
Paid : Rs. Nil
Balance : Rs.4,53,559/-
A Notice in form 'O' is issued.
Penalty U/S 27(4)(ii)
Penalty levied @ 100% U/S 27(4)(ii) under TNVAT Act 2006.
Penalty due : Rs.4,53,559/-
Paid :Rs. Nil
Balance : Rs.4,53,559/-
A Notice in form 'RR' is issued.”
4. The Petitioner had submitted his objection to invoke Section 19(5)
(C) of the Tamil Nadu Value Added Tax Act vide objection, dated 11.04.2019
which runs to more than five pages, wherein, reliance was sought to be placed
on atleast five judgments, none of which has been referred in the impugned
order while confirming the proposals, while also requesting an opportunity of
personal hearing.
5. In view of the same, this Court finds that the impugned order, dated
04.11.2019 is liable to be set aside for being a non-speaking order, non-
consideration of the objection and not considering the Petitioner's request for
personal hearing before passing the order. The above infirmities in the
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W.P(MD).No.1612 of 2020
decision making process vitiates the impugned order. Hence, the impugned
order, dated 04.11.2019 is set aside with liberty to the Respondents to re-do
the assessment after affording an opportunity of personal hearing to the
Petitioner.
6. With the above observations, the writ petition stands disposed of. No
costs. Consequently, connected miscellaneous petition is closed.
11.10.2022
Index : Yes / No
Internet : Yes/ No
sn
To
1.The Secretary to the Government,
Fort St.George, Chennai-9.
2.The Commissioner of Commercial Taxes,
Ezhilagam, Chepauk,
Chennai-5.
3.The Assistant Commissioner (CT),
Kamarajar Salai Circle,
Madurai-20.
https://www.mhc.tn.gov.in/judis
W.P(MD).No.1612 of 2020
MOHAMMED SHAFFIQ, J.
sn
W.P(MD).No.1612 of 2020
11.10.2022
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