A Remand Order can be relied upon while Completing Assessment: Madras HC [Read Judgment]

Madras High Court

In a recent decision, the High Court of Madras expressed a view that an Order remanding the matter for fresh consideration can be relied upon while completing assessment. The Court was considering a writ petition filed against an order passed under the provisions of the Tamil Nadu Value Added Tax Act.

The petitioners in the present case, has preferred the present petition challenging the order of the Deputy Commissioner (CT). The order says that on scrutiny of the monthly returns of the petitioner, it is revealed that the petitioner have made interstate sales against Form-C at 2%, but they have not made input tax credit (ITC) reversal under Section 19 (2) (v) of the TNVAT Act. The petitioners maintained that the amendment under Section 19 (2) (v) of the Act covers the goods falling under Section 19 (2) (v) relating to goods used for trading purpose in the course of interstate commerce and trade, and that, VAT purchases by the petitioner’s Factory falls under Section 19(2) (v), which is used as input, in manufacturing of goods in the State of Tamil Nadu. Therefore, the petitioner stated that the figures adopted in pre-revision notices does not fall under Section 19 (2) (v) of the Act, and as per the existing provisions of the amendment, the ITC reversal workings as made in the pre revision notices are not applicable to the petitioner. Further, the petitioner further referred the order passed by the same Court, in the case of Lucas Tvt. Ltd., Vs. State of Tamil Nadu in support of their contentions. The Officer refused to accept the findings of the Court made in the said case, by pointing out that it is only a remand order.

While quashing the impugned order, the Court observed that “The Authority ought to have seen that as to what was the purpose of the remand, and merely because, it was an order, remanding the matter for fresh consideration, it does not mean that, it cannot be relied upon.” Accordingly, the matter was remanded to the assessing authority for fresh consideration.

Read the full text of the Judgment below.