The Madras High Court quashed the order levying tax and Penalty on deemed assessment basis.
The petitioner, Tvl.Weather Maker is engaged in trading of LLOYD Air Conditioners. The case of the petitioner is that the petitioner had also been doing a maintenance contract. For the said service rendered by the petitioner, the petitioner was paid the charges. According to the petitioner, the said amount of charges would represent the petitioner’s income and that it would not fall within the purview of TNVAT Act. In fact, for the charges paid to the petitioner, TDS had also been affected.
The petitioner is an assessee registered with the Deputy State Tax Officer. The case on hand pertains to the assessment year 2014-15. The petitioner’s assessment was finalised on a deemed assessment basis under Section 22(2) of TNVAT Act, 2006. The assessing authority called for the petitioner’s book of accounts and after scrutinizing the same, the pre-revision notice was issued. The petitioner offered his objections. Thereafter, the impugned order came to be passed levying tax and penalty. Challenging the same, this writ petition came to be filed.
The petitioner submitted that he would remit 10% of the disputed tax amount before the second respondent on or before March 31, 2021. This would be without prejudice to the petitioner’s contentions and if this Court remands the matter, remittance to be made by the petitioner on or before March 31, 2021 will abide by the outcome of the remand order to be passed by the Deputy State Tax Officer after remand.
The single judge bench of Justice G.R.Swaminathan setting aside the order remitted the matter to the file of the Deputy State Tax Officer to pass orders afresh in accordance with law.
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