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TN VAT - Works Contracts Tax disputes Appeal

Process.
and
Consequences of Form O & RR not issued by AO
The readers may peruse the content
Taxation of works contracts under TN
element in project execution with key
Contract Tax Liability under TN VAT act/
following links:

in other article(s) on caption(s)

VAT act, maximization of profit
factor of VAT, TDS for Works
Rules, written by me, by using the

https://www.scribd.com/doc/216414185/Taxation-of-Works-ContractsUnder-TN-VAT-Act-4th-Revision-Made-on-01-04-2014

https://www.scribd.com/doc/216776679/TDS-Under-TNVAT-RulesRevision-Made-01-04-2014

Tax disputes between the dealer and the department, is discussed herein in
detail, for the purpose of understanding in the hands of the person who
intend to react on the erroneous and/or wrong assessment orders passed by
the assessing authority.

Erroneous Assessment is an assessment that deviates from the law and

creates a jurisdictional defect, and that is therefore invalid, by virtue of
deficient in nature. It is an assessment in excess of fair due as defined
under the relevant act/ rule, as a result of a clerical mistake on the part of
the assessing authority and the dealer also in certain cases and the
circumstances. The claim of erroneous assessment arises solely in
circumstances where the assessment is at odds with the records of the
assessing authority and accordingly reflects a clerical error/ erroneous

An article by P.Jagadeeswaran, VAT Practitioner, Laws Reward Solutions,

Ambattur, Chennai 600 058 #9176038176/
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assessment. Where a taxpayer provides information to the Assessing
authority and/or the valuation predicated upon the information or where a
taxpayer and the Assessor both rely upon information which each believes
to be correct, subsequent discovery of mistakes in the underlying facts will
not give rise to a claim of erroneous assessment. Judgments based on
reliable information, reasonably relied upon by the assessing authority as to
the amount, description, and nature of the taxable transaction/ issues
subjected to tax, when made without malice, fraud or wilful misconduct, are
neither erroneous nor illegal.

And again, even if the assessment orders passed by the assessing authority
do not fall under the above erroneous assessment category, it does not
meant that there is no disputes between the dealer and the assessing
authority. The second reason for disputes arises owing to technical or venial
breach of the provisions of the act or where the breach flows from a bona
fide belief in the hands of the dealer as well as in the hands of the assessing
authority.

The Process of Appeal and Revision

Standard format of the application:
Form X for appeal under section 51 and 52 and Form Y for revision under
section 54 or 57. The form need to be submitted in duplicate and the
original should carry the original order on which the appeal or revision is
filed [Rule 14(1) & 14(7)]

Option of Appeal OR Revision:

In the absence of provision for statutory appeal under section 51 and 52,
the dealer can go for revision under section 54 or 57. Hence it is not an
option of the dealer whether to choose appeal or revision, it is a process of
law. In certain remote cases, where the appeal was rejected partially and
accepted partially , the dealer can prefer revision on the partial order to the
extent the appeal were rejected.

An article by P.Jagadeeswaran, VAT Practitioner, Laws Reward Solutions,

Ambattur, Chennai 600 058 #9176038176/
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Appeal Fee:
Rs.100/- for appeal [Rule 14(2)]

Time limit for appeal or Revision:

30 days from the date of receipt of order under section 51(1) and 54/57.

Conditions:
In case of appeal under section 51(1) the conditional payment of a sum
equal to 25% of disputed tax liability plus 100% of accepted tax liability
need to be deposited and evidence for the same be attached along with the
application for appeal.

Resubmission time limit:

Ten days from the date of receipt of the defective application returned by the
appellate authority and further 10 days may be extended, if sufficient cause
were exhibited by the appellant.

Hearing opportunity & Conclusion:

The appellant is offered with first opportunity to be heard by the Appellate
authority and the second opportunity to the departmental representative
and further the departmental representative shall file written representation
and copy of the same be delivered to the appellant. Based on the written
representation, the appellant is entitled to represent his arguments and
counters. Based on the arguments, counters, facts presented by both the
parties, including natural law and justice and proper appreciation of law
from time to time, the orders will be passed by the appellate authority.
[Under Sec 51(3)]

An article by P.Jagadeeswaran, VAT Practitioner, Laws Reward Solutions,

Ambattur, Chennai 600 058 #9176038176/
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Death of Appellant or Revision Petitioner:
During the appeal revision process, if the appellant or revision petitioner
dies the proceedings will be kept pending until the legal representative of the
deceased appellant or petitioner comes in to picture and apply himself for
being made party in the said proceedings [Rule 14(9)].

Consequences of Form O and RR not issued:

On an assessment by the authority, if there is any tax dues were arrived,
Form O requires to be issued along with the orders under Rule 14(18),
14(21), 14(22) and for interest and penalty dues Form RR requires to be
issued under Rule 16(5), 16-A. If the assessing authority fails to issue such
forms, along with the orders, where there is a tax, interest and penalty dues,
due from the dealer, the assessing authority has not only has no rights and
privileges to exercise the recovery proceeding under Revenue Recovery act,
but also the dealer can take it as chance to counter the fact as the assessing
authority has passed the orders without application of mind, besides
quoting the quality as deficient in nature.

On the other hand, it does not mean that the dealer need not go for appeal
as the assessing authority has no rights and privileges to initiate recovery
proceedings. If the dealer fails to go for an appeal, quoting the above reason,
the assessing authority can issue a notice for rectification of assessment
under section 84 on his own and pass fresh orders along with necessary
forms in Form O and/or Form RR. Hence it is advisable to the dealer to go
for an appeal with appellate authority or revision, in the absence of
statutory appeal provisions, even if the assessing authority fails to issue
Form O and/or Form RR along with the assessment orders, if the orders
were not acceptable to the dealer(s).

An article by P.Jagadeeswaran, VAT Practitioner, Laws Reward Solutions,

Ambattur, Chennai 600 058 #9176038176/
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For any further clarifications the reader may reach the author:

P.Jagadeeswaran,
VAT Practitioner,

Laws Reward Solutions,

33, FF, Elango Street,

Chelliamman Nagar,
Athipet, Ambattur,
Chennai 600 058

Mobile no.: 9176038176

email: eswaran60@yahoo.com & eswaran1960@gmail.com
The readers are informed to note that the facts and informations
stated in this article is only the opinion of the author and assesses
can use the concepts and logical used in this article in support of
their cases.

An article by P.Jagadeeswaran, VAT Practitioner, Laws Reward Solutions,

Ambattur, Chennai 600 058 #9176038176/
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