Tvl.R.Rama Rao Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court held that the arriving at taxable turnover arbitrarily without giving particulars of the value of the goods and value of the services untenable under Tamil Nadu Value Added Tax Act (TNVAT Act).
Facts- The petitioner has preferred the present writ as being aggrieved by the impugned order dated 01.06.2022. The estimated taxable turnover has been arrived at Rs.19,81,79,432/-, by deducting 30% towards labour charges and like charges from the total contract income of Rs.28,31,13,474/- reported in the Profit & Loss Account.
The petitioner is a Civil Contractor and executes works contracts for statutory Corporations and State Departments such as Greater Chennai Corporation, Highways and Rural Works Department, etc. The petitioner had earlier filed a petition and had prayed for a mandamus to direct the respondents therein to consider and grant a refund of the TDS (deduction of tax at source) amount of Rs.56,18,991/- to the petitioner covered by certificate in Form T and statement of tax deduction at source in Form R filed by the Greater Chennai Corporation.
The said Writ Petition was disposed of by this Court by its order dated 14.12.2021 without expressing any opinion on merits by directing the respondents therein to consider the representation dated 07.11.2018 and 02.07.2021 of the petitioner. By these representations, the petitioner had requested the 1st respondent therein, the respondent herein to refund an amount of Rs.56,18,991/- to the petitioner which is said to have been deposited by the Greater Chennai Corporation as TDS while paying the amounts to the petitioner u/s. 13 of the TNVAT Act, 2006.
The specific case of the petitioner is that the respondent had wrongly determined the taxable turnover under Rule 8(5)(d) of the TNVAT Rules, 2007, r/w Section 5 of the TNVAT Act, 2006.
Petitioner also asked to furnish the proof regarding the filing returns and payment of tax by the Sub-Contractors in respect of item No.10 (Deduction of TDS) and to furnish the details of unregistered purchases for the liability arrived u/s. 12 (name and address of the seller). The respondent has passed the impugned order dated 01.06.2022.
Although the petitioner has an alternate remedy by way of an appeal before the Appellate Authority under the provisions of the TNVAT Act, 2006, the petitioner has challenged the impugned assessment order dated 01.06.2022.
Conclusion- The petitioner cannot arrive at the taxable turnover arbitrarily without giving particulars of the value of the goods and value of the services and other items to claim deduction involved to arrive at an arbitrary taxable turnover contrary to scope of Rule 8(5) of the TNVAT Rules, 2007 by merely adding 15% to the value of the purchases. The petitioner was duty bound to give particulars.
Since, it is the case of the petitioner that few more TDS certificates have been issued to the Petitioner by the Greater Corporation of Chennai, the petitioner is directed to furnish the same to the respondent within thirty (30) days from the date of receipt of a copy of this Order.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner is aggrieved by the impugned order dated 01.06.2022 passed by the respondent for the assessment year 2016-2017.
2. The taxable turnover of the petitioner has been arrived as Rs.21,67,26,240/- in the impugned order dated 01.06.2022 as detailed below:
Total turnover – Rs.21,67,26,240/-
Taxable turnover – Rs.21,67,26,240/-
