RAHUL RAJ TRADINGCOMPANY Vs. ASSISTANT COMMISSIONER (CT)(FAC)

JUDGEMENT

(1.) THE petitioner, a registered dealer under the provisions of the Tamil Nadu Value Added Tax has challenged the assessment orders for the year 2010 - 2011 and 2011 2012.

(2.) THE allegation against the petitioner was that on a surprise inspection and cross check of the dealer M/s.VNR Infrastructures Limited, was found that the petitioner has effected circular transaction with VNR Infrastructures Limited, Sri Balaji Enterprises, Paradise Technochem India P. Ltd. and VNR Logistics Pvt. Ltd. The petitioner was given opportunity to submit their objection to the notice which was issued in pursuance to the surprise inspection. The petitioner submitted his explanation stating that the said VNR Infrastructures Limited is said to have purchased goods from the petitioner and an invoice number was given. However, the department entertained doubt regarding the transaction stating that it was a circular transaction and the same set of documents have been circulated without any transfer of goods. To state that it was not a circular transaction, the department called for the details of lorry receipts, name of the transport company, weighment slip, details of freight charges paid and details of unloading charges. Despite opportunity, the petitioner did not produce these documents.

(3.) IN the light of the above, while rejecting the prayer for quashing the impugned order of assessment, liberty is given to the petitioner to produce the documents called for by the respondent to prove the actual movement of goods. If such documents are produced, the respondent shall afford opportunity of personal hearing to the petitioner and consider and pass appropriate orders on merits and in accordance with law.