The Tax Publishers 2020 TaxPub(VAT) 0093 (Del-HC) : (2020) 095 ITPJ (V) 0422

DELHI VALUE ADDED TAX ACT,

Section 34(1)(a)

Where in reassessment proceedings, revenue sought to make no distinction between liability under Delhi Value Added Tax Act, 2004 and that under Central Sales Tax Act, 1956, reopening of assessment in instant case by revenue, invoking extended period of 6 years in terms of proviso to section 34(1)(a) of Delhi Value Added Tax Act, 2004, was bad in law.

Reassessment - Validity of reassessment - Invoking extended period of 6 years - Revenue sought to make no distinction between liability under Delhi Value Added Tax Act, 2004 and that under Central Sales Tax Act, 1956

Assessee private limited company engaged in business of ferrous and non-ferrous metals, sought quashing of order of default assessment of tax. Assessee contended that reopening of assessee beyond prescribed period of limitation was not valid. Held: Twin requirements of commissioner to form requisite reason to believe, and to have for such reasons to have a live nexus with failure to pay tax as a result of the Assessees concealment, omission or failure to disclose material particulars, was not fulfilled in instant case. In instant case, in reassessment proceedings, revenue sought to make no distinction between liability under Delhi Value Added Tax Act, 2004 and that under Central Sales Tax Act, 1956. In terms of section 5 of Delhi Value Added Tax Act, 2004, these two could not be combined. Thus, reopening of assessment in instant case by revenue, invoking extended period of 6 years in terms of proviso to section 34(1)(a) of Delhi Value Added Tax Act, 2004 was bad in law.

REFERRED : Commissioner of Trade and Taxes & Ors. v. M/s. Ahluwalia Contracts (India) Ltd. Civil Appeal Nos. 15605-08 of 2017 : 2017 TaxPub(VAT) 0415 (SC), M/s. HM. Industries v. Commissioner of Value Addes Tax (2015) 78 VST 382 (Del), Alumeco India Extrusion Limited & Anr. v. Commercial Tax Officer, Begumpet Circle, Pavani & Ors. (2010) 27 VST 419 (AP) : 2009 TaxPub(ST) 0895 (AP)

FAVOUR : Against the assessee

A.Y. :



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