M/S.Dandayudapani Spinning v. The Commercial Tax Officer,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07.01.2021
CORAM
THE HON'BLE MR. JUSTICE C.SARAVANAN W.P. No. 24593 of 2015 and M.P. No.1 of 2015 M/s.Dandayudapani Spinning Mills, Represented by its Partner, No.274/2A, 2B, Chinnakammalapatti, Kammalapatti Post, Palladam - 641 671.
... Petitioner Vs 1.The Commercial Tax Officer, Palladam Circle, Palladam.
2.The Commercial Tax Officer, Enforcement Group - VII, Coimbatore.
... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorari, to call for the records of the first respondent in his proceedings in TIN 33826244064/2013-14 and quash the impugned order dated 26.06.2015.
For Petitioner : Ms.Hema Muralikrishnan For Respondents : Mr.R.Swarnavel Government Advocate
ORDER
The petitioner is aggrieved by the impugned assessment order dated 26.06.2015 passed by the 1st respondent pursuant to a notice dated 05.03.2015.
2. The learned counsel for the petitioner submits that the disputed tax for an amount of Rs.17,62,820/- has been appropriated by the respondents by making a spot collection of Rs.18,00,000/- on 29.10.2014 when there was an inspection at the premises of the petitioner.
3. At the time of inspection, statements were obtained from the petitioner to the effect that the petitioner had wrongly availed the exemption by disguising the clearance of Cone Yarn as Hank Yarn and that there was also discrepancy in the stock, on which the tax was to be paid.
4. The statements were recorded from the petitioner dated 31.10.2014. However, while issuing notice dated 05.03.2015, the issue relating to discrepancy in the stock statement was not mentioned. There was only a proposal to revise the assessment under Section 27(1) (a) of the TNGST Act, 1959.
5. The tax liability was arrived as follows:- Stock Value:
Hank Yarn Court Stock in Kgs Rate Stock Value in Rs.
40's Stock 16344 45,76,320 30's Stock 6,10,120 Total 51,86,440 Hank Yarn Sales from January 2014 to March 2014: Month Local Value Interstate Sales Total Sales Rs Rs.
Rs.
January 2014 72,24,678 14,83,500 87,08,178 February 49,30,500 4,80,000 54,10,500 March 2014 70,37,210 16,58,750 86,95,960 Total 1,91,92,388 36,22,250 2,28,14,638 Less : Hank Yarn Stock* 51,86,440 Treated as sales of Cone Yarn 1,76,28,198 Add : Equal addition 1,76,28,198 Total 3,25,56,396 Tax Due @ 5% 17,62,820 Hence it was proposed to revise the assessment under Section 27 (1) (a) as below:
Sales of Cone Yarn camouflage as Hank Yarn : Rs.1,76,28,198 Add : Equal Addition : Rs.1,76,28,198 ------------------------- Total Proposed : Rs.3,52,56,396 @ 5% ------------------------- Penalty under Section 27(3) is also proposed
6. In the impugned order, the issue relating to discrepancy in the stock statement has been included. The learned counsel for the petitioner submits that in case there was a dispute among the partners of the petitioner, and therefore a proper reply could not be given and thus equal addition of
Rs.1,76,28,198/- towards the sale of Hank Yarn as Cone Yarn needs to be addressed afresh.
7. I have considered the arguments advanced by the learned counsel for the petitioner and the respondents.
8. In this case a spot collection of Rs.18,00,000/- was made and therefore no prejudice will be caused to the Revenue if one more opportunity is given to the petitioner to rebut the proposals in the notice.
9. In the light of the above discussion, the impugned order passed by the 1st respondent is set aside and the case is remitted back to the respondents to pass a fresh order within a period of 60 days from the date of receipt of a copy of this order.
The petitioner is given liberty to file a reply/representation within a period of 30 days from the date of receipt of a copy of this order. It is needless to state that before passing final order, the respondents shall also call upon the petitioner for a personal hearing.
10. This writ petition stands disposed of with the above observations.
No costs.
Consequently, connected miscellaneous petition is closed.
Sd/- Assistant Registrar (CS.III) /True Copy/ Sub Assistant Registrar To 1.The Commercial Tax Officer, Palladam Circle, Palladam.
2.The Commercial Tax Officer, Enforcement Group - VII, Coimbatore.
+1cc to Mr.B.Raveendran, Advocate SR.NO.1341 +1cc to The Special Government Pleader SR.NO.1359 AKM/23.02.21/ 3P-5C/ W.P. No. 24593 of 2015 and M.P. No.1 of 2015 07.01.2021