The Madras High Court, in Tvl.Hifi Mobiles v. The Deputy Commercial Tax Officer held that a revision order passed under the provisions of the Tamil Nadu Value Added Tax Act, solely based on the web report without further inquiry is invalid.
The petitioner is a dealer in Mobile Phones. The Assessing Officer passed a revision order against the assessee without setting out any reason for passing such an order.
The petitioner approached the High Court against the order.
Allowing the petition, Justice M Govindaraj pointed out that the revision was ordered on the basis of the details obtained from web report on certain escaped turnovers.
“But, what is clear in the order is that the defects were found from the details obtained from web report. In the cases of mismatch on the basis of the details obtained from web report, it is incumbent on the Assessing Officer to inquire with the other end dealers and ascertain the correctness of the transaction made by the dealer and the returns filed by him. Without conducting an inquiry, simply, on the basis of the web report, a proposal cannot be sent without application of mind. In the instant case, no such application of mind appears to have been made by the Assessing Officer nor such proposal is made. Further, while passing final orders, objections raised by the dealer should have been considered, discussed and a reasoned order should have been passed. But, in the instant case, none of the settled procedures have been followed.”
The Court noted that the respondent passed a vague and nonspeaking and the same does not stand the test of law and accordingly, it is liable to be set aside.
Subscribe Taxscan Premium to view the Judgment
