The Madras High Court while remanding the matter back to the Service Tax Department held that the assessee should be permitted to reconcile Recovery Slips with Ledger.
The respondent officer had issued notice directing the appellant, M/s.Supreme Trading House to come over to the office of the respondent. Consequently, the appellant had appeared pursuant to the notice and the representation of the appellant stated that they have received the account books records, along with the instructions and they have noted the contents and requested for 30 days’ time to submit their reply. The respondent had permitted 15 days’ time and stated that no further delay is permitted, which has been noted in the representation, the appellant had submitted a representation stating that, though they sought 30 days, they have been granted only 15 days’ time and it is not sufficient to file objections, as the assessment relates to six years and the recovery slips are voluminous and verification of the slips with the Books of Accounts is a cumbersome process and therefore, they requested time till 2nd week of January, 2020. This representation was given in the office of the respondent and received in the office as per the endorsement in the Letter Delivery Book.
The division bench of Justice T.S.Sivagnanam and Justice Sathi Kumar Sukumara Kurup noted that the respondent had granted reasonable time to the appellant and the appellant had sought for adjournment on more than three occasions. But their contention is that the reconciliation would take certain time and they are required to explain to the Assessing Officer by comparing the slips along with the ledger. This according to them is a very cumbersome process, more particularly, when the assessment is for six years. When the writ petitions were entertained, it appears that the respondent was directed by the Court not to initiate any coercive action, not in written orders, but by making certain oral observations. Thus, the assessments have been kept pending since October, 2020. The writ petitions have now been dismissed by the impugned order.
“In our view, if the appellant has not made out a case for interference in a writ petition, it would be appropriate to leave it open to the appellant to avail the alternate remedy under the Act rather than foreclosing the issue. In any event, we are of the view that, one more opportunity can be granted to the appellant and nothing more. If the appellant is able to reconcile the slips with the ledger, then the Assessing Officer may take note of it and complete the assessment. Only for such reason, we are inclined to grant one more opportunity to the appellant, especially when in the Assessment Order, for the first time, the Assessing Officer has referred to D7 records, which are from Sl.Nos.1 to 15 and contained in the Books marked A to O. Therefore, to that extent at least, the appellant should be permitted to reconcile the slips with the ledger,” the court said.
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