Madras HC in the case of Sunrise Foods Private Limited Versus The Assistant Commissioner (CT)

Case Covered:

Sunrise Foods Private Limited 

Versus

The Assistant Commissioner (CT)

Facts of the case:

Writ Petitions filed under Article 226 of the Constitution of India praying to issue Writ of Mandamus, directing the respondent herein to accept the revised returns filed by the petitioners along with application dated 24.05.2016 as reiterated on 09.06.2016 and extend Input Tax Credit under the provisions of Section 12(2) of the Tamil Nadu Value Added Tax Act, 2006

By this common order, all the 6 writ petitions are being disposed of. In W.P.Nos. 21983-87 of 2016, the petitioner has challenged the respective assessment orders dated 29.1.2016 passed by the respondent for the assessment years 2010-11 to 2014-15.

The petitioner, a dealer of turmeric had locally purchased turmeric from various registered/unregistered dealers without payment of tax as their turnover were reportedly below Rs.300 crores during the respective assessment year and were therefore exempted under Section 15 read with Item 18, Part B, 4th Schedule of the Tamil Nadu Value Added Tax Act, 2006.

Observations of the court:

Since the impugned orders also deal with other issues. I am therefore inclined to quash the impugned orders and remit the case back to the respondent with the direction to the respondent to pass a speaking order within a period of 3 months from date of receipt of this order in terms of the above observation as far as the levy of purchase tax under Section 12 (1) of the Tamil Nadu Value Added Tax Act, 2006 is concerned.

Judgement of the court:

Accordingly, the impugned orders are quashed. The respondent is therefore directed to pass a fresh order on merits after giving the petitioner an opportunity of hearing either in person or through videoconference in view of the risk on account of the threat of the Covid19 pandemic. The remand proceeding shall be confined to purchase tax under Section 12(1) of the Tamil Nadu Value Added Tax Act, 2006 alone. The demand confirmed on other issues is not disturbed.

 The petitioner is therefore directed to furnish necessary information to facilitate hearing of the case in the de-novo proceeding through video conference to the respondent within a period of 2 weeks from date of receipt of this order if the situations so warrant on account of the continuance of Covid19 pandemic. The respondent shall thereafter take the case and pass orders in the light of the above observations.

These writ petitions stand disposed of with the above observation. Connected miscellaneous applications are closed. No cost.

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