Tvl. Lakshmi Agency Vs State Tax Officer (Madras High Court)
Madras High Court held that while dealing with the assessment made on the basis of computer generated mis-match report i.e. mis-match in VAT return should be dealt with as per procedure narrated in circular no. 5/2021 dated 24.02.2021.
Facts-
The petitioner has challenged an order of assessment dated 20.07.2021 passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006, relatable to the period 2011-12.
The issue of mismatch has long plagued assessees and the Commercial Taxes Department and as early as in 2018, pursuant to several decisions of this Court, the Special Commissioner/Commissioner of Commercial Taxes had directed the Assessing Authorities to keep assessments relating to mismatch of particulars in abeyance till a proper and appropriate scheme be formulated for addressing this issue.
Notably, on 24.02.2021, a Circular has been issued bearing No.5/2021, wherein, the Principal Secretary/Commissioner, Commercial Taxes has dealt with this issue in extenso.
Conclusion-
Held that in case of mismatch in VAT return let the procedure narrated in circular no. 5/2021 dated 24.02.2021 be followed. Accordingly, in the present matter, show cause notice, as indicated in the Circular will be issued to the petitioner within a period of four (4) weeks from today with all necessary enclosures. The assessments will be completed thereafter within a period of 180 days, in accordance with law, after hearing the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner has challenged an order of assessment dated 20.07.2021 passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006, relatable to the period 2011-12.
2 .When the matter had come up for admission on 10.10.2022, the following order was passed:
…….
2. After some hearing, learned counsel for the petitioner seeks one week adjournment to file an affidavit from the petitioner, who volunteers to make a remittance of a portion of the disputed tax, i.e., 15%.
……
3. Today, an affidavit dated 11.10.2022 has been filed by the petitioner reiterating her request to consider setting aside of the assessment order and volunteering payment of 15% of the disputed tax within the time to be fixed by this Court.
4. Learned Government Advocate would have no objection to the request made.
5. Hence, a period of four (4) weeks from today is granted to the petitioner to pay the 15% of the disputed tax as volunteered. Upon payment thereof, the impugned order of assessment shall stand set aside.
6. The issue of mismatch has long plagued assessees and the Commercial Taxes Department and as early as in 2018, pursuant to several decisions of this Court, the Special Commissioner/Commissioner of Commercial Taxes had directed the Assessing Authorities to keep assessments relating to mismatch of particulars in abeyance till a proper and appropriate scheme be formulated for addressing this issue.
7. On 24.02.2021, a Circular has been issued bearing No.5/2021, wherein, the Principal Secretary/Commissioner, Commercial Taxes has dealt with this issue in extenso. The entirety of the Circular is extracted hereunder:
“Circular No.5/2021
LW10/12521/2016
Office of the Principal Secretary/
Commissioner of Commercial Taxes,
Chepauk, Chennai – 600 005.
dated: 24.02.2021
Circular
