The Madras High Court directed Assessing Officer (AO), to determine appropriate rate of tax of Aviation Turbine Fuel (ATF), thereby granting relief to Indian Oil Corporation Limited (IOC).
The writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records on the files of the Respondent dated 31.10.2019 and to quash the same. The petitioner has challenged proceedings of the sole respondent, Assessing Officer in terms of Section 84 of the Tamil Nadu Value Added Tax Act, 2006.
The petitioner, Indian Oil Corporation Limited has supplied Aviation Turbine Fuel (ATF) to various entities, airlines as well as other organisations and institutions. The returns filed by the petitioner for the period 2009-10 were taken up for assessment, pursuant to audit conducted in their place of business.
The officer then has initiated proceedings under Section 84 to correct the error contained in order of assessment dated 24.11.2015 and bring to tax the difference in rate of ATF in the computation. In response, the petitioner has submitted all materials in respect of its claim for concessional rate that has come to be rejected by the officer who simply states that the issue has been considered in the original assessment.
A Single Bench consisting of Justice Anitha Sumanth observed that “Thus, the order of assessment, in so far as it relates to the claim of concessional rate of tax on ATF is set aside, as is impugned order under Section 84. The petitioner will appear before the Assessing Officer on Thursday, the 29th of September, 2022, without awaiting any further notice in this regard, along with a copy of reply dated 29.02.2012 and other materials, if any, in support of its claim of concessional rate of tax.”
“The petitioner should be heard in full and a speaking order passed in this regard determining the appropriate rate of tax on ATF within a period of 8 weeks from date of personal hearing” the Court added.
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