Pendency of Representation Filed by Assessee not a bar to issuing Pre-revision Notices by Department: Madras HC [Read Judgment]

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The Madras High Court in its case of Tvl Sri Kumaran Mills v Assistant Commissioner held that where a representation had been filed by the taxpayer before the relevant authority by the assessee and notices were issued during the pendency of the same by the Department, the pre-revision notices are liable to be quashed.

The petitioner is a dealer in terms of the provisions of the Tamil Nadu VAT Act and has challenged the pre-revision notices on the ground that pursuant to a visit by the Enforcement Officials in the premises of the petitioner concern, a representation questioning the validity of the statement of stock reconciliation obtained from third persons. The representation filed by the petitioner is pending and the impugned notices were issued during the pendency of the same.

The writ petition has been filed under Article 226 to issue a writ of certiorari calling for the records on the files of the respondent in his matter and quash the same as being without jurisdiction and authority of law

It has been submitted by the petitioner that the impugned notices ought to be quashed and a direction be issued to dispose of the pending representation.

The respondent, on the other hand, submits that the pre-revision notices merely call upon the petitioner to file objections to the issues set out therein and the present writ petitions are premature and that the present writ petition is dismissed.

The Bench constituting of single bench Dr Justice Anita Sumanth setting aside the pre-revision notices relied upon the admission by the Department wherein the Department admits that the purpose of pre-revision notices is held as not for implementing Enforcement Wing proposals but for putting forth issues that arise from the returns of turnover filed by a dealer to the dealer for response and rebuttal, making them of a routine nature contrary to framing of assessments wherein the Authority has to apply his mind to the issues that arise from the return of turnover filed by dealer/assessee.

The Court while relying on Circular No. 3/2019 dated 18.01.2019 by Commissioner of State Tax, Chepauk held that the Department will issue pre-revision/assessment notices after due and independent application of mind within a period of 3 weeks from date of receipt of this order while quashing the impugned notices and allowing the present Writ Petition.

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