C.A.MOTORS Vs. COMMERCIAL TAX OFFICER TIRUVARUR

JUDGEMENT

(1.) The petitioner challenges proceedings for the periods 2013-14, 2014-15 and 2015-16 passed in terms of the Tamil Nadu Tax on Entry of Goods into Local Areas Act, 1990 (in short 'Entry Tax Act').

(2.) Mr.Rajasekar, appearing for the petitioner states that the petitioner is a dealer in two wheelers. Monthly returns have been filed in terms of the Tamil Nadu Value Added Tax Act, 2006 (in short 'VAT Act') offering to tax the turnover from sale of vehicles. However, admittedly, the petitioner has not filed any returns in terms of the provisions of the Entry Tax Act. A common pre-assessment Notice was issued for the periods 2013-14 to 2015-16 (upto August, 2015) on 30.09.2015. The notice alleges that statutory returns in terms of the Entry Tax Act had not been filed and called upon the petitioner to do so disclosing the purchase turnover of the vehicles and pay entry tax at 12.5% as required.

(3.) The petitioner filed a reply dated 15.10.2015 stating that it was unaware of the provisions of the Entry Tax Act and had come to be informed of the same only in the course of an investigation conducted by the Enforcement Wing on 18.09.2015. The inspection had been uneventful otherwise and no difference of stock or purchase/sales omission had been noticed by the Officer. The petitioner stated that it had filed returns under the VAT Act offering sale turnover to tax at 14.5% and thus had paid sales tax in excess. It relied on the provisions of Section 4 of the Entry Tax Act that provided for a set off of excess entry tax against the sales tax liability.