The Madras High Court, while quashing an assessment under the Tamil Nadu Value Added Tax Act, 2006 has directed the VAT department to follow the procedure to be followed in the cases of Mis-match.
The Assessing Officer made an addition to turnover against the assessee, M/s.Gharpure Engg. & Construction (Pvt) Ltd., on the ground of mismatch of particulars between the details contained in the returns filed by the petitioner as compared with the annexures filed by the selling/purchasing dealers.
Allowing the writ petition, Justice Anita Sumanth observed that “this very issue of mismatch has engaged the attention of this court and after a prolonged hiatus, the Special Commissioner/Commissioner of Commercial Taxes Department has issued Circular No.5 dated 24.02.2021 addressing the issue of mismatch. A procedure has been put in place to deal with the issues of mismatch involving a detailed examination and reconciliation of particulars using the good offices of the Assessing Officer of the concerned dealers as well as the selling/purchasing dealers.”
Quashing the order, the High Court held that “let the procedure set out in the aforesaid circular be applied to the present case as well. The impugned orders of assessment are set aside to enable both parties i.e. assessee as well as department to engage in finalisation of the issue in line with circular No.5. Let the petitioner be heard, the procedure as set out in the circular be followed scrupulously and orders of assessment be passed within a period of eight weeks from the date of receipt of a copy of this order.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates.
