Madras High Court
Tvl.R.Sankara Narayanan Industries vs The Deputy State Tax Officer – 2 on 19 March, 2025
Author: G.R.Swaminathan
Bench: G.R.Swaminathan
W.A.(MD)Nos.667 & 668 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 19.03.2025
CORAM
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
AND
THE HONOURABLE MR.JUSTICE M.JOTHIRAMAN
W.A(MD)Nos.667 & 668 of 2022
and
C.M.P(MD)Nos.5663 & 5664 of 2022
W.A(MD)No.667 of 2022:
Tvl.R.Sankara Narayanan Industries,
Represented by its Proprietor
R.Sankara Narayanan,
No.114, Opposite to RMTC Colony,
Mariammankovilpatti,
Theni. ... Appellant /
Petitioner
Vs.
The Deputy State Tax Officer – 2,
Theni – 1. ... Respondent /
Respondent
Prayer: Writ Appeal filed under Clause 15 of Letters Patent to set aside
the order of the learned Judge in W.P(MD)No.4380 of 2022 dated
28.04.2022 and allow the above said Writ Appeal.
For Appellant : Mr.A.Chandrasekaran
For Respondent : Mr.R.Suresh Kumar
Additional Government Pleader
1/7
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
W.A.(MD)Nos.667 & 668 of 2022
W.A(MD)No.668 of 2022:
Tvl.R.Sankara Narayanan Industries,
Represented by its Proprietor
R.Sankara Narayanan,
No.114, Opposite to RMTC Colony,
Mariammankovilpatti,
Theni. ... Appellant /
Petitioner
Vs.
The Deputy State Tax Officer – 2,
Theni – 1. ... Respondent /
Respondent
Prayer: Writ Appeal filed under Clause 15 of Letters Patent to set aside
the order of the learned Judge in W.P(MD)No.4381 of 2022 dated
28.04.2022 and allow the above said Writ Appeal.
For Appellant : Mr.A.Chandrasekaran
For Respondent : Mr.R.Suresh Kumar
Additional Government Pleader
COMMON JUDGMENT
(Judgment of the Court was made by G.R.Swaminathan J.)
Heard both sides.
2.The appellant was a dealer in Charcoal and Agarbathies. The
case on hand pertains to the assessment of the dealers under Central
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
W.A.(MD)Nos.667 & 668 of 2022
Sales Tax Act, 1956. The assessee had paid tax at 2% by submitting C-
Form.
3.While so on 14.07.2021, the respondent issued notice for the
years 2009-10 and 2010-11 calling upon the assessee / dealer to produce
the 'C' Form declarations. The assessee offered their explanation. They
also attended the personal hearing. The stand of the assessee was that
they were maintaining the accounts only for a period of 6 years and that
therefore they are not in a position to comply with the demand of the
assessing officer.
4.Not satisfied with the explanation given by the assessee, the
assessing officer passed order dated 08.02.2022 denying concessional
rate of 2% and levying higher rate of 4%. Challenging the said
assessment order, the assessee filed W.P(MD)Nos.4380 and 4381 of
2022. The learned single Judge vide order dated 28.04.2022 dismissed
the writ petitions and granted liberty to the assessee to file statutory
appeals. Aggrieved by the same, these writ appeals have been filed.
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
W.A.(MD)Nos.667 & 668 of 2022
5.The prime contention urged by the learned counsel appearing for
the appellant is that the demand is bared by limitation. He pointed out
that the assessment years are 2009-2010 and 2010-2011. Rule 64(2)(b)
of the Tamil Nadu Value Added Tax Rules, 2007 mandates that the dealer
/ assessee must maintain the books of account and documents for a
period of 6 years from the end of the assessment year. Therefore, the
assessee cannot be faulted for not keeping the photo copies of the C-form
originally submitted by them. The assessee reiterates before us that they
did submit the C-form declaration during the relevant time.
6.The learned Additional Government Pleader appearing for the
assessing officer is right in his submission that there is no limitation
period for making original assessment under Section 22(4) of Tamil
Nadu Value Added Tax Act, 2006 read with Section 9(2) of the Central
Sales Tax Act, 1956. Though a learned Judge of this Court had earlier
held that the original assessment must be made before the deemed
assessment kicks in, there has been a subsequent change in the legal
position. He drew our attention to the order dated 18.09.2024 rendered
by the Hon'ble Division Bench in W.P.Nos.6153, 6156 and 6157 of 2022
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
W.A.(MD)Nos.667 & 668 of 2022
(M/s.Oliva Care Vs The State Tax Offier, Podanur Assessment Circle,
Coimbatore). It was held therein that there is no period of limitation
prescribed for making original assessment under Section 22(4) of Tamil
Nadu Value Added Tax Act, 2006. But the very same Hon'ble Division
Bench had clarified that this power must be exercised within a reasonable
period. The only question that we are called upon to determine is
whether in this case the impugned assessment was made within a
reasonable period. It is obvious that the issue is sought to be reopened
by the Department after a lapse of more than a decade. We do not want
to lay down any hard and fast rule prescribing what would be the
reasonable period. This issue has to be determined with reference to the
facts and circumstances of each case.
7.Coming to the case on hand, we hold that the notice and
assessment under Section 22(4) of Tamil Nadu Value Added Tax Act,
2006 have not been issued within a reasonable period. Respectfully
applying the Hon'ble Division Bench decision rendered in M/s.Oliva
Care, we hold that the impugned proceedings are hit by limitation. In this
view of the matter, the orders impugned in the writ petitions as well as in
these Writ Appeals are set aside.
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
W.A.(MD)Nos.667 & 668 of 2022
8.These Writ Appeals are allowed accordingly. No costs.
Consequently, connected miscellaneous petitions are closed.
[G.R.S., J.] [M.J.R., J.]
19.03.2025
NCC : Yes / No
Index : Yes / No
Internet : Yes/ No
MGA
To
The Deputy State Tax Officer – 2,
Theni – 1.
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
W.A.(MD)Nos.667 & 668 of 2022
G.R.SWAMINATHAN,J.
AND
M.JOTHIRAMAN, J.
MGA
W.A(MD)Nos.667 & 668 of 2022
and
C.M.P(MD)Nos.5663 & 5664 of 2022
19.03.2025
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/04/2025 03:14:08 pm )
