Held that the advance ruling authority must give a personal hearing and record reasons before rejecting an application under Section 48-A of the TNVAT Act.
Impugned order set aside and matter remitted to the first respondent authority for fresh consideration after affording a personal hearing.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.1.2013
CORAM
THE HONOURABLE MR. JUSTICE R.SUDHAKAR
Writ Petition No.77 of 2013 and M.P.Nos.1 and 2 of 2013
TVL Supreme Industries Ltd., represented by M.V.N.Kutty, Senior General Manager, No.68-Sipcot Industrial Complex, Hosur. ... Petitioner
vs.
1.The Authority for clarification
and advance ruling constituted u/s 48-A of the TNVAT Act 2006, Ezhilagam Buildings, Chepauk, Chennai-5.
2.The Assessing Authority, Hosur (North) Assessment Circle,
Hosur.
... Respondents
Writ Petition is filed under Article 226 of Constitution of India praying to issue a Writ of Certiorarified Mandamus, calling for the records of the first respondent in A.C.A.A.R.59/2012-13 D.Dis.Acts Cell II/29358/2012 dated 26.10.2012, quash the same and direct the first respondent to reconsider the issue after furnishing the petitioner a copy of the materials, particulars furnished by the second respondent to the first respondent and affording a personal hearing to the petitioner as contemplated u/s 48-A read with Rule 12 (A) of TNVAT Act 2006 and Rules 2007.
For Petitioner : Mr.S.N.Kirubanandam
For Respondents : Mr.Aditya Reddy, Government Advocate(Tax).
O R D E R
This Writ Petition is filed praying to issue a Writ of Certiorarified Mandamus, calling for the records of the first respondent in A.C.A.A.R.59/2012-13 D.Dis.Acts Cell II/29358/2012 dated 26.10.2012, quash the same and direct the first respondent to reconsider the issue after furnishing the petitioner a copy of the materials, particulars furnished by the second respondent to the first respondent and affording a personal hearing to the petitioner as contemplated under Section 48-A of the Tamil Nadu Value Added Tax Act, 2006 read with Rule 12-A of the Tamil Nadu Value Added Tax Rules, 2007.
“6. There is no specific Entry for “Chemically cross linked polyethylene Sheet” under any of the Schedules.
“Any other goods, not specified in any of the Schedules”.
To come to this conclusion, reasons have been given in paras 4 and 5 which reads as follows:-
“4. The dealer has stated that 'INSU Shield” is a closed all chemically cross linked polyethylene material. The closed cell structure of the product prevents moisture ingress, and the chemical composition and the density of the material makes it suitable for thermal insulation application in air-conditioning and factory sheds under roofing areas. The product is manufactured with or without facings material such as aluminium foil and UV film, which serve as vapour barriers providing ease of application and sealing of joints for stable performance.
“48-A. Clarification and Advance Ruling – (1) The Government may constitute a State Level Authority for Clarification and Advance Ruling, (hereinafter in this section, referred to as the Authority) comprising of the Commissioner of Commercial Taxes and two Additional Commissioners to clarify, any point concerning the rate of tax, on an application by a registered dealer:
Provided that no such application shall be entertained unless it is accompanied by proof of payment of such fee, paid in such manner, as may be prescribed.
(2) No application shall be entertained where the question raised in the application:-
(i) is already pending before any appellate or revising authority of the department or Appellate Tribunal or any Court; or
(ii) relates to an issue which is designed apparently for avoidance of tax:
Provided that no application shall be rejected under this sub-section without giving the applicant a reasonable opportunity of being heard and where the application is rejected, reasons for such rejection, shall be recorded in the order.”
(emphasis supplied)
“12-A Authority for Clarification and Advance Ruling.- (1) Every application under section 48-A by a registered dealer, seeking clarification on any point concerning the rate of tax, shall be made to the Authority in Form VV in quadruplicate and shall be accompanied by a crossed banker’s cheque in favour of State Bank of India or crossed demand draft or pay order of a Bank in support of having paid a sum of rupees one thousand only in favour of the Commissioner of Commercial Taxes, Chennai.
(2) On receipt of any such application, the Authority shall cause a copy thereof to be forwarded to the assessing or registering authority concerned and call for any information or records.
(3) The Authority may, after examining such application and the records called for, by order, either admit or reject the application within thirty days from the date of receipt of the application:
Provided that no application shall be rejected without giving the applicant a reasonable opportunity of being heard and the reasons for rejection shall be recorded in the order.”
(emphasis supplied)
The proviso to Rule 12-A of the TNVAT Rules, 2007 speaks about the manner in which the application should be considered. It also speaks that no application shall be rejected without giving the applicant a reasonable opportunity of being heard and the reasons for rejection shall be recorded in the order, which is in consonance with Section 48-A of the TNVAT Act, 2006.
Sd/Asst. Registrar.
/true copy/
Sub Asst. Registrar.
ts
To
W.P.No.77 of 2013 rsk[co] gp/29.1
2 issues framed by the court
Whether the probing authority must record reasons and grant an opportunity of hearing before rejecting an application for advanced ruling under Section 48-A of the TNVAT Act.
Whether the rejection of the application for advanced ruling by the First Respondent was legal in the absence of a personal hearing and recorded reasons.
2 provisions across 2 enactments
TVL Supreme Industries Ltd.
The Authority for clarification and advance ruling constituted u/s 48-A of the TNVAT Act 2006
The Assessing Authority, Hosur (North)
R.Sudhakar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
