PROCEEDINGS OF THE ASSISTANT COMMISSIONER(APPEALS) COMMERCIAL TAXES, PRESENT: S. PRASANNA Date of order :- 20.02.2020 Appeal no :- KVATA(ALPY)171,172, 173,174, 175,176/19 From the order of the :- AIT & CTO, Year of assessment :- 2016-17 (April 2016 to September 2016) Name of appellant :- Friends Autocraft, Instituted on :- 31.12.2016 Date of hearing :- 21.01.2020 Present for appellant :-Sri.V.Devananda Narasimham, Advocate

APPELLATE ORDER AND GROUNDS OF DECISION

The appeals are filed against the assessment orders of Agrl. Income Tax & Commercial Tax Officer, Kuthiathode, Order No.32041880785/ April 2016-17 to September 2016-17 dated.31.12.2016. The assessments completed based on non-filing of returns for the months of 04/16, 05/16, 06/16, 07/16, 08/16 & 09/16. The assessing authority estimated the turnover by adding 20% to the turnover conceded in the corresponding month of the previous year return and levied tax plus interest. Against the orders, the appellant/dealer defend the cases on the following grounds.

2016-17(April 2016)

1. The appellant was a registered KVAT dealer on the rolls of the Commercial Tax Officer, Kuthiathode with TIN No.32041880785, engaged in body building activity on the chassis supplied by the owners at Chandiroor, . In the absence of working capital, heavy competition from other dealers, huge liability of sundry creditor’s, labor issues etc., business activities were partly stopped from April, 2016 onwards and the bank had taken stern action to recover its dues, resulted in complete closure of business. Thus, the appellant was not in a position to file monthly returns as provided under the KVAT Act from April, 2016 onwards.

2. The assessing authority had issued a notice U/s.22(3) dated.31.10.2016, estimating sales turnover conceded during the same period of previous year at Rs.1,50,000/- and finally passed an assessment order accordingly on 31.12.2016 demanding tax and interest for the month of April, 2016. While so, the workers were started strike in front of the business place. However, return for the month of April, 2016 was e-filed on 18.01.2017, remitted tax with interest in accordance with Rule 16 of the KVAT Rules, 2005, a copy of the same enclosed for your perusal and record.

3. It is submitted that since the assessing authority had passed impugned assessment order on 31.12.2016, the demand of tax and interest is still pending as recoverable from the appellant. In the absence of original assessment order, appellant approached the assessing authority, collected certified copy and filed this appeal for the month of April, 2016 belatedly.

2016-17(May 2016)

1. The appellant was a registered KVAT dealer on the rolls of the Commercial Tax Officer, Kuthiathode with TIN No.32041880785, engaged in body building activity on the chassis supplied by the owners at Chandiroor, Cherthala. In the absence of working capital, heavy competition from other dealers, huge liability of sundry creditor’s, labor issues etc., business activities were partly stopped from April, 2016 onwards and the bank had taken stern action to recover its dues, resulted in complete closure of business. Thus, the appellant was not in a position to file monthly returns as provided under the KVAT Act from April, 2016 onwards.

2. The assessing authority had issued a common notice U/s.22(3) of the KVAT Act dated.31.10.2016, estimating sales by adding 20% of the conceded turnover during the previous year and month at Rs.2,52,000/- and finally passed an assessment order accordingly on 31.12.2016 demanding tax Rs.36,540/- and interest at Rs.2,558/- for the month of May, 2016. While so, the workers were started strike in front of the business place. However, return for the month of May, 2016 was e-filed on 01.03.2017 as nil return in the absence of any sale bills, a copy of the same is enclosed for your perusal and record.

3. It is submitted that since the assessing authority had passed impugned assessment order on 31.12.2016, the demand of tax and interest is still pending as recoverable from the appellant. In the absence of original assessment order, appellant approached the assessing authority, collected certified copy and filed this appeal for the month of May, 2016 belatedly.

2016-17( June 2016)

1. The appellant was a registered KVAT dealer on the rolls of the Commercial Tax Officer, Kuthiathode with TIN No.32041880785, engaged in body building activity on the chassis supplied by the owners at Chandiroor, Cherthala. In the absence of working capital, heavy competition from other dealers, huge liability of sundry creditor’s, labor issues etc., business activities were partly stopped from April, 2016 onwards and the bank had taken stern action to recover its dues, resulted in complete closure of business. Thus, the appellant was not in a position to file monthly returns as provided under the KVAT Act from April, 2016 onwards including the month of June, 2016.

2. The assessing authority had issued a common notice U/s.22(3) of the KVAT Act dated.31.10.2016, estimating sales by adding 20% of the conceded turnover during the previous year and month at Rs.2,52,000/- and finally passed an assessment order accordingly on 31.12.2016 demanding tax Rs.36,540/- and interest at Rs.2,192/- for the month of June, 2016. While so, the workers were started strike in front of the business place. However, return for the month of June, 2016 was e-filed on 01.03.2017 as nil return in the absence of any sale bills, a copy of the same is enclosed for your perusal and record.

3. It is submitted that since the assessing authority had passed impugned assessment order on 31.12.2016, the demand of tax and interest is still pending as recoverable from the appellant. In the absence of original assessment order, appellant approached the assessing authority, collected certified copy and filed this appeal for the month of June, 2016 belatedly.

2016-17( July 2016)

1. The appellant was a registered KVAT dealer on the rolls of the Commercial Tax Officer, Kuthiathode with TIN No.32041880785, engaged in body building activity on the chassis supplied by the owners at Chandiroor, Cherthala. In the absence of working capital, heavy competition from other dealers, huge liability of sundry creditor’s, labor issues etc., business activities were partly stopped from April, 2016 onwards and the bank had taken stern action to recover its dues, resulted in complete closure of business. Thus, the appellant was not in a position to file monthly returns as provided under the KVAT Act from April, 2016 onwards including for the month of July, 2016.

2. The assessing authority had issued a notice U/s.22(3) dated.31.10.2016, estimating sales by adding 20% of the conceded turnover during the previous year and month at Rs.2,16,000/- and finally passed an assessment order accordingly on 31.12.2016 demanding tax Rs.31,320/- and interest at Rs.1,566/- for the month of July, 2016. While so, the workers were started strike in front of the business place. However, return for the month of July, 2016 was e-filed on 16.01.2018, remitted tax with interest in accordance with Rule 16 of the KVAT Rules, 2005, a copy of the same enclosed for your perusal and record.

3. It is submitted that since the assessing authority had passed impugned assessment order on 31.12.2016, the demand of tax and interest is still pending as recoverable from the appellant. In the absence of original assessment order, appellant approached the assessing authority, collected certified copy and filed this appeal for the month of July, 2016 belatedly.

2016-17( August 2016)

1. The appellant was a registered KVAT dealer on the rolls of the Commercial Tax Officer, Kuthiathode with TIN No.32041880785, engaged in body building activity on the chassis supplied by the owners at Chandiroor, Cherthala. In the absence of working capital, heavy competition from other dealers, huge liability of sundry creditor’s, labor issues etc., business activities were partly stopped from April, 2016 onwards and the bank had taken stern action to recover its dues, resulted in complete closure of business. Thus, the appellant was not in a position to file monthly returns as provided under the KVAT Act from April, 2016 onwards including for the month of August, 2016.

2. The assessing authority had issued a common notice U/s.22(3) of the KVAT Act dated.31.10.2016, estimating sales by adding 20% of the conceded turnover during the previous year and month at Rs.9,60,000/- and finally passed an assessment order accordingly on 31.12.2016 demanding tax Rs.1,39,200/- and interest at Rs.5,568/- for the month of August, 2016 only on presumption. While so, the workers were started strike in front of the business place. However, return for the month of August, 2016 was e-filed on 18.01.2018 as nil return in the absence of any sale bills, a copy of the same is enclosed for your perusal and record.

3. It is submitted that since the assessing authority had passed impugned assessment order on 31.12.2016, the demand of tax and interest is still pending as recoverable from the appellant. In the absence of original assessment order, appellant approached the assessing authority, collected certified copy and filed this appeal for the month of August, 2016 belatedly. 2016-17( September 2016)

1. The appellant was a registered KVAT dealer on the rolls of the Commercial Tax Officer, Kuthiathode with TIN No.32041880785, engaged in body building activity on the chassis supplied by the owners at Chandiroor, Cherthala. In the absence of working capital, heavy competition from other dealers, huge liability of sundry creditor’s, labor issues etc., business activities were partly stopped from April, 2016 onwards and the bank had taken stern action to recover its dues, resulted in complete closure of business. Thus, the appellant was not in a position to file monthly returns as provided under the KVAT Act from April, 2016 onwards including for the month of September, 2016.

2. The assessing authority had issued a common notice U/s.22(3) of the KVAT Act dated.31.10.2016, estimating sales by adding 20% of the conceded turnover during the previous year and month at Rs.1,80,000/- and finally passed an assessment order accordingly on 31.12.2016 demanding tax Rs.26,100/- and interest at Rs.783/- for the month of September, 2016 only on presumption. While so, the workers were started strike in front of the business place. However, return for the month of September, 2016 was e-filed on 18.01.2018 as nil return in the absence of any sale bills, a copy of the same is enclosed for your perusal and record.

3. It is submitted that since the assessing authority had passed impugned assessment order on 31.12.2016, the demand of tax and interest is still pending as recoverable from the appellant. In the absence of original assessment order, appellant approached the assessing authority, collected certified copy and filed this appeal for the month of September, 2016 belatedly.

In the above circumstances, it is humbly prayed that after considering the facts, reasons, situations of the appellant, the appeal may be allowed in the interest of equity and justice. It is also submitted that the appellant filed balance monthly returns along with tax and interest subsequently without any notice.

Sri.V.Devananda Narasimham, Advocate, appeared and heard the case and argued based on grounds of appeal.

Heard the cases. The appeals cases are filed in same nature and same subject matter, hence the cases are disposed in a common order. The authorized representative of the firm argued that the workers were started strike and so the appellant was not able to submit proper reply to the pre-assessment notice. Later, the returns were e-filed and remitted tax with interest to the state exchequer. Considering the arguments of the authorized representative/appellant and in the light of the natural justice the assessing authority is directed to accept the return already filed on merit and also directed that the offence coming u/s.67 of the KVAT Act 2003, the assessing authority has the discretion of the above. Order accordingly.

In the result the appeal stands allowed.

Result: Allowed (2016-17 April to September)

ASSISTANT COMMISSIONER (APPEALS) ALAPPUZHA To The Appellant through a/r Copy submitted to Joint Commissioner(Law) Copy submitted to Deputy Commissioner,CT,Alappuzha Copy to AIT&CTO,Kuthiathode/File