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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice R. SURESH KUMAR, C.SARAVANAN
Oliva Care, Represented by its Sole Proprietor Thiru S.U.Abu Thahir – Appellant
Versus
State Tax Officer – Respondent
ORDER :
C.SARAVANAN, J.
By this common order, all the writ petitions are being disposed of.
2. In these writ petitions, the petitioner has challenged the Impugned Assessment Orders dated 11.01.2021 passed by the respondent for the Assessment Years 2014-2015, 2015-2016 and 2016-2017.
3. By the Impugned Assessment Orders, the demand proposed in the notices that preceded the respective Impugned Assessment Orders have been confirmed.
4. The respective Assessment Orders impugned in these writ petitions have not only redetermined the taxable turn over of the petitioner but have also confirmed the differential tax payable by the petitioner under Section 22 (4) of the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as “TNVAT Act”) but had also imposed penalty under Section 22 (5) of TNVAT Act, 2006.
5. Extract of the differential tax and penalty confirmed in the respective Writ Petitions are as under:-
W.P.No.6153 of 2021 (Assessment Year 2014-2015)
Abstract:
| Tax | Penalty | Total | |
| Due | Rs.13,74,947/- | Rs.20,09,429/- | Rs.33,84,376/- |
| Paid | Rs. 35,328/- | Rs. 0/- | Rs. 35,328/- |
| Balance to be paid | Rs.13,39,619/- | Rs.20,09,429/- | Rs.33,49,048/- |
W.P.No.6156 of 2021 (Assessment Year 2015-2016)
Abstract:
| Tax | Penalty | Total | |
| Due | |||
No time limitation exists under Section 22(4) of the Tamil Nadu Value Added Tax Act for issuing assessment orders when conditions are met; penalties under Section 22(5) are valid for up to six years.
Statutory authorities must complete tax assessments within a reasonable time to ensure compliance with principles of natural justice, even if no specific period is explicitly defined in the law.
Assessments beyond five years are invalid without proper notice, and best judgment assessments require rejection of returns, which was not adhered to in this case.
The main legal point established in the judgment is that re-assessment proceedings must be initiated within the prescribed limitation period, and the assessing officer's determination of suppressed c....
Retrospective amendments to tax legislation must not infringe upon accrued rights or create unfair disadvantages for assessees, ensuring reasonable time limits for assessments.
The court established that amendments to the KVAT Act's limitation provisions are prospective and do not apply retroactively to past assessments.
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