TVL T J ARUMUGAM & CO, REP BY ITS PROPRIETOR T J ARUMUGAM Vs. STATE OF TAMIL NADU, REP BY ITS SECRETARY TO GOVERNMENT

JUDGEMENT

(1.) Heard both.

(2.) The petitioner, which is a registered dealer on the file of the third respondent under the provisions of the Tamil Nadu Value Added Tax Act, 2006, is a contractor doing works contract. The petitioner is aggrieved by the order of assessment dated 18.1.2017 primarily on the ground that the third respondent did not afford an opportunity of personal hearing, though the revision of assessment has been done under Section 27 of the said Act.

(3.) In terms of the Proviso to Section 27(2) of the said Act, where for any reason the input tax credit has been availed by the dealer wrongly or where any dealer produces false bills, vouchers, declaration certificate or any other documents with a view to support his claim of input tax credit or refund, the Assessing Authority shall, at any time, within a period of five years from the date of order of assessment, reverse input tax credit availed and determine the tax due after making such a enquiry, as it may consider necessary. However, prior to passing such an order, a reasonable opportunity to show cause against such order shall be granted. This opportunity has been interpreted by Courts to mean that apart from entitling the dealer to submit their objections, the dealer should be heard in person, because, in an assessment proceeding, complicated factual issues would arise for consideration.