M/S.S.S.KANI AUTO SPARES, V. THE COMMERCIAL TAX OFFICER

WP(MD)/13574/2015

AI Insights

The case involves M/s. S.S.Kani Auto Spares, represented by its proprietor Mr. Rama Subbu, who filed a Writ Petition against the order of the Commercial Tax Officer, Tuticorin-III Assessment Circle. The petitioner contested the order dated 26.06.2015, which was based on an inspection report alleging sales suppression and additional taxable turnover for the assessment year 2011-2012. The petitioner argued that the order was unlawful and violated the principles of natural justice as it was passed without a personal hearing, which is a requirement under Section 84 of the TNVAT Act. The respondent acknowledged the lack of a personal hearing and agreed to remit the matter back for a proper hearing.

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 697426 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 25-08-2015
• Assessment Year: misc
• Laws Referred To: TNVAT Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: R K KARTHIKEYAN
• Assessee Lawyers: R D GANESAN
• Keywords: Natural Justice; Personal hearing; Pre-revision notice; Revision of Assessment; Sales suppression; Self-assessment; Taxable turnover; Writ of Certiorarified Mandamus
• Section: 84; 3(4); 22(2)

Judgement Text

"1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED :25.08.2015 CORAM THE HONOURABLE MR.JUSTICE R.SUBBIAH W.P(MD).No.13574 of 2015 and M.P(MD)No.1 of 2015 M/s.S.S.Kani Auto Spares, Rep. By its Proprietor Mr.Rama Subbu ... Petitioner Vs. The Commercial Tax Officer(MAIN), Tuticorin-III Assessment Circle, Tuticorin. ... Respondent This Writ Petition has been filed praying for a Writ of Certiorarified Mandamus to call for the records of the respondent in TIN No.33545922469/2011-12 and quash the order dated 26.06.2015 as it is unlawful and in violation of the principles of natural justice and further direct the respondent to grant an opportunity of hearing as per the provisions of the TNVAT Act. For petitioner : Mr.R.D.Ganesan For Respondent : Mr.R.Karthikeyan, Additional Government Pleader ORDER The Writ Petition has been filed praying for a Writ of Certiorarified Mandamus to call for the records of the respondent in TIN No.33545922469/2011-12 and quash the order, dated 26.06.2015, as it is unlawful and in violation of the principles of natural justice and further direct the respondent to grant an opportunity of hearing as per the provisions of the TNVAT Act. 2. The learned counsel for the petitioner submitted that the petitioner is a dealer in Auto Spares and for the assessment year 2011- 12, the petitioner has been originally assessed to tax on the taxable turnover of Rs.44,55,123/- at 0.5% under Section 3(4) of the Act on self assessment as per Section 22(2) of the Act. The place of business of the petitioner was inspected by the team of Enforcement Wing Officers on 25.08.2014. In the inspection report, they have pointed out that the purchase value of Rs.29,78,675/- was omitted to be reported in the returns and thereby estimated the sales suppression to the tune of Rs.33,95,690/- to arrive at the total and taxable turnover of Rs.78,50,813/- for the assessment year 2011-2012. While, making revision of assessment based upon the inspection report, the respondent had issued pre-revision notice commonly for the assessment years 2011-2012 and 2012- 2013 vide notice, dated 27.03.2015. The petitioner has sought for time https://hcservices.ecourts.gov.in/hcservices/ 2 to file his objection to disprove the alleged purchase suppression arrived at by the Inspecting Authorities. But, the respondent had passed common order for the year 2011-2012 & 2013-2014 vide order, dated 14.05.2015. As every assessment year is a separate unit, the respondent has straightaway passed the impugned order for the year 2011-2012 under Section 84 of the Act. In the revised order passed under Section 84 of the Act, he has included the additional turnover of Rs.19,07,748/- at 12.5% without issuance of notice and grant of opportunity of personal hearing as stipulated under Section 84 of the Act. Since, no opportunity of personal hearing was given to the petitioner under Section 84 of the Income Tax Act, the petitioner has come forward with this Petition for the above stated relief. 3. The learned Additional Government Pleader submitted that since no opportunity of personal hearing was given to the petitioner, the matter may be remitted back to the respondent. 4. I have heard the learned counsel for the petitioner and the learned Additional Government Pleader for the respondent. 5. In view of the submission made, this Court is inclined to set aside the order of the respondent dated 26.06.2015. 6. In the result, the Writ Petition is allowed and the order of the respondent, dated 26.06.2015, is hereby set aside. No Costs. The matter is remitted back to the respondent with a direction to issue notice to the petitioner for personal hearing and on receipt of such notice, the petitioner is directed to appear before the respondent for enquiry and the respondent is further directed to conclude the enquiry and pass appropriate orders on merits and in accordance with law. The entire exercise shall be completed within a period of four weeks from the date of receipt of a copy of this order. Consequently, connected miscellaneous petition is closed. Sd/- Assistant Registrar(Crl.Side) /True Copy/ Sub Assistant Registrar pm To The Commercial Tax Officer(MAIN), Tuticorin-III Assessment Circle, Tuticorin. +1CC to Mr.R.D.Ganesan Advocate Sr.No.49031 +1CC to Spl.Government Pleader sr.No.49472 GJM/SKS/RR/SARJ8.9.15-2P-4C W.P(MD).No.13574 of 2015 25.08.2015 https://hcservices.ecourts.gov.in/hcservices/ "