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IN THE HIGH COURT OF JUDICATURE AT MADRAS
ANITA SUMANTH, J.
L.V. Praveena – Appellant
Versus
The State Tax Officer (ST) Ambur Assessment Circle Ambur – Respondent
W.P. Nos. 8154, 8158, 8159, 8163 of 2023 & WMP Nos. 8388, 8389, 8391, 8395 of 2023
Decided On : 16-03-2023
Violation of Section 26 of the Tamil Nadu Value Added Tax Act, 2006 - Assessment Orders - Continuity of Business - [Tamil Nadu Value Added Tax Act, 2006, Section 26] - The court rejected the argument that the assessments made in the name of the deceased dealer cannot be upheld, as the business was being continued by the petitioner with a GSTIN number, and there was continuity of the business in her hands. The court set aside the impugned orders to be redone de novo, considering the petitioner's inability to get in touch with the consultant who handled the sales tax appeals for her husband.
Fact of the Case:
The Writ Petitions relate to the periods 2007-08 to 2010-11 and proceedings passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006 pursuant to an order of remand by the Sales Tax Appellate Tribunal. The petitioner, running the business in the same name and from the same address as the deceased dealer, sought to quash the orders passed in violation of Section 26 of the Act and against the principles of natural justice.
Finding of the Court:
The court found that there was continuity of the business in the petitioner's hands and that she had been given sufficient opportunities in the remand proceedings. The court rejected the argument that the assessments made in the name of the deceased dealer cannot be upheld and set aside the impugned orders to be redone de novo.
Issues: The issues revolved around the validity of the assessment orders made in the name of the deceased dealer and the petitioner's compliance with the provisions of the Act.
Ratio Decidendi: The court held that the assessments made in the name of the deceased dealer could be upheld, as the business was being continued by the petitioner with a GSTIN number, and there was continuity of the business in her hands. The court set aside the impugned orders to be redone de novo, considering the petitioner's inability to get in touch with the consultant who handled the sales tax appeals for her husband.
Final Decision: The court set aside the impugned orders to be redone de novo, and directed the petitioner to appear before the respondent for a personal hearing, after which orders shall be passed within a period of four weeks from the date of the hearing.
JUDGMENT
(Prayers in WP.8154 of 2023: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the respondent in VAT No.33984262169/2007-2008 dated 06.06.2022 and quash the same as passed in violative of section 26 of the Tamil Nadu Value Added Tax Act, 2006 and also against the principles of natural justice and further direct the respondent to grant reasonable opportunity to the petitioner as contemplated under the provisions of the TNVAT Act and pass orders in accordance with law.
WP.8158 of 2023: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the respondent in VAT No.33984262169/2008-2009 dated 06.06.2022 and quash the same as passed in violative of section 26 of the Tamil Nadu Value Added Tax Act, 2006 and also against the principles of natural justice and further direct the respondent to grant reasonable opportunity to the petitioner as contemplated under the provisions of the TNVAT Act and pass orders in accordance with law.
WP.8159 of 2023: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the respondent in VAT No.33984262169/2009-2010 dated 06.06.2022 and quash the same as passed in violative of section 26 of the Tamil Nadu Value Added Tax Act, 2006 and also against the principles of natural justice and further direct the respondent to grant reasonable opportunity to the petitioner as contemplated under the provisions of the TNVAT Act and pass orders in accordance with law.
WP.8163 of 2023: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the respondent in VAT No.33984262169/2010-2011 dated 06.06.2022 and quash the same as passed in violative of section 26 of the Tamil Nadu Value Added Tax Act, 2006 and also against the principles of natural justice and further direct the respondent to grant reasonable opportunity to the petitioner as contemplated under the provisions of the TNVAT Act and pass orders in accordance with law.)
Common Order:
Mr.C.Harsha Raj, learned Additional Government Pleader accepts notice for the respondent and is armed with instructions to enable this Court to dispose the matter finally, even at the stage of admission.
2. These Writ Petitions relate to the periods 2007-08 to 2010-11 and proceedings passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (in short ''Act'') pursuant to an order of remand by the Sales Tax Appellate Tribunal dated 06.05.2018.
3. The assessee named in the impugned orders is one Tvl.National Traders, Ambur. The assessee was being run as a sole proprietary by the husband of the petitioner, who was a regular dealer under the provisions of the Act. He passed away on 25.01.2020. The business under the same name and from same address, admittedly, is being conducted by the petitioner under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017 (in short ''TNGST Act'').
4. Pursuant to an order of remand, a notice was issued by the Sales Tax Officer on 21.09.2020, received by the petitioner and responded to on 21.09.2021. She appears to have approached the officer expressing lack of knowledge with any of the earlier proceedings and had sought time to respond. Though she was given sufficient time, she did nothing in support of her submissions in the sales tax proceedings and hence the impugned orders have come to be passed without further reference to her.
5. There is really no infirmity in these orders, seeing as
i) the business is being continued by the petitioner with a GSTIN number and there is hence continuity of the business in her hands.
ii) It is thus incumbent upon her to comply with the provisions of the Act.
iii) Sufficient opportunities were given to her i
The main legal point established in the judgment is that the continuity of business in the petitioner's hands, despite the demise of the original dealer, validated the assessment orders made in the n....
Non-registration and failure to comply with statutory provisions preclude the benefit of presumptive taxation under Section 6 of the Tamil Nadu Value Added Tax Act, 2006.
Assessment orders quashed as barred by six-year limitation under S.27 TNVAT Act from prior assessments.
An assessment order passed against a deceased sole proprietor is a nullity and void in law, and fresh proceedings must be initiated against the legal heirs.
An assessing authority cannot unilaterally fasten tax liability based on third-party transactions without providing the assessee a fair opportunity to cross-examine or contest the validity of those s....
An assessment order issued against a deceased individual is a nullity and void, requiring fresh proceedings to be initiated against the legal heirs.
The court emphasized the importance of registration under the Act and the obligation to disclose all relevant transactions for the determination of taxable turnover.
The main legal point established in the judgment is the application of Section 84 of the Tamil Nadu Value Added Tax Act, 2006, which empowers the authorities to rectify an error apparent on the face ....
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