The High Court allowed writ petitions filed against assessment orders quashing them due to denial of personal hearing and incomplete inquiry by the tax authority.
Impugned orders dated 17.07.2009 quashed; matter remitted to Deputy Commercial Tax Officer for personal hearing and fresh orders.
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.
W.P.(MD)Nos.9262 & 9263 of 2009
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 19.02.2021
CORAM
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
W.P.(MD)Nos.9262 & 9263 of 2009 and M.P.(MD)Nos.1 & 1 of 2009
W.P.(MD)No.9262 of 2009
M/s.Dhanadhanya Dwellings (Pvt.) Ltd., (Now known as Harihar Dwellings (P) Ltd., No.1, (Old No.4-E/25, Raja Colony, Collector's Office Road, Trichy – 1.
... Petitioner
Vs.
Trichy Road Circle, Coimbatore. (R-2 is suo motu impleaded
vide Order dated 21.08.2019) ... Respondents
Prayer: Writ petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records of the respondent in his proceedings in TNGST/3521406/2004-2005, quash the assessment order dated 17.07.2009 in so far as it relates to disallowance of the claim of deduction under Section.3-B(2)(d) of the Tamil Nadu General Sales Tax Act, 1959.
W.P.(MD)No.9263 of 2009
M/s.Dhanadhanya Dwellings (Pvt.) Ltd., (Now known as Harihar Dwellings (P) Ltd., No.1, (Old No.4-E/25, Raja Colony, Collector's Office Road, Trichy – 1. ... Petitioner
Vs.
The Deputy Commercial Tax Officer, Palakarai – I Assessment Circle, Trichy. ... Respondent
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W.P.(MD)Nos.9262 & 9263 of 2009
Prayer: Writ petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records of the respondent in his proceedings in TNGST/3521406/2005-2006, quash the assessment order dated 17.07.2009 in so far as it relates to disallowance of the claim of deduction under Section.3-B(2)(d) of the Tamil Nadu General Sales Tax Act, 1959.
(in both W.Ps.)
For Petitioner : Mr.P.Radhakrishnan For Respondents : Mr.S.Dhayalan, Government Advocate. * * *
C O M M O N O R D E R
The petitioner is a dealer registered with the Deputy Commercial Tax Officer, Palakarai – I Assessment Circle, Trichy/first respondent herein. The petitioner is engaged in civil construction. The assessment years pertain to 2004-2005 and 20052006. The petitioner claims that when they were executing their project work, they had engaged the service of one M/s.Thasami Builders (P) Ltd., Coimbatore. The case of the petitioner is that as per Section 3-B(2)(d) of Tamil Nadu General Sales Tax Act, 1959, they are entitled to deduct the amount paid to the said contractors. But then, that is subject to certain terms. The said contractor must be a registered dealer and they must have reflected the transactions with the petitioner in their returns and also paid the tax thereon. Only if these conditions set out in the Act are fulfilled, deduction can be made by the petitioner herein. Claiming that all the statutory formalities have been fulfilled, the petitioner filed their return. Thereafter, the petitioner received pre-revision notice dated 30.03.2007 from the first respondent. The petitioner offered their explanation and also produced two certificates from the Commercial Tax Officer, Trichy Road Circle, Coimbatore. But the certificates produced by the petitioner, according to the first respondent, were not sufficient. Therefore, the first respondent wrote a letter bearing No.TNGST 3521406/04-05 dated 06.11.2007 calling upon the Commercial Tax Officer, Trichy Road Circle, Coimbatore, to verify the statement made by the petitioner herein. It appears that no response was received from the second respondent herein. Therefore, the impugned orders dated 17.07.2009 came to be passed. They are assailed in these writ petitions.
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W.P.(MD)Nos.9262 & 9263 of 2009
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W.P.(MD)Nos.9262 & 9263 of 2009
Sd/-
Assistant Registrar(CO)
// True Copy //
/ /2021
Sub Assistant Registrar(CS)
PMU
Note : In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned.
To:
+1 CC to M/s.P.RADHAKRISHNAN, Advocate ( SR-6405[F] dated 22/02/2021 )
+1 CC to M/s.SPL GP ( SR-6700[F] dated 23/02/2021 )
W.P.(MD)Nos.9262 & 9263 of 2009 19.02.2021
KUN(CO)
TR(26.02.2021) 4P 5C
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2 issues framed by the court
Whether the Assessing Officer violated natural justice by not affording a personal hearing to the petitioner before passing the impugned order.
Whether the Assessing Officer failed to conclude proceedings after forwarding a letter to another officer for verification of particulars.
2 provisions across 2 enactments
M/s.Dhanadhanya Dwellings (Pvt.) Ltd.
The Deputy Commercial Tax Officer, Palakarai – I Assessment Circle, Trichy
The Commercial Tax Officer, Trichy Road Circle, Coimbatore
G.R.Swaminathan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
