Section 27 in Tamil Nadu Value Added Tax Act, 2006
27. Assessment of escaped turnover and wrong availment of input tax credit.
(1)(a)Where, for any reason, the whole or any part of the turnover of business of a dealer has escaped assessment to tax, the assessing authority may, subject to the provisions of sub-section (3), at any time within a period of [six years from the date of assessment] [These words were substituted for the words 'five years from the date of assessment order by the assessing authority' by Section 6 (1) of the Fifth Amendment Act 23 of 2012, effective from a date to be notified and notified as 19th June 2012 by GO.No.82], determine to the best of its judgment the turnover which has escaped assessment and assess the tax payable on such turnover after making such enquiry as it may consider necessary.(b)Where, for any reason, the whole or any part of the turnover of business of a dealer has been assessed at a rate lower than the rate at which it is assessable, the assessing authority may, at any time within a period of [six years from the date of assessesment] [These words were substituted by Section 6 of the aforesaid Fifth Amendment Act, 23 of 2012 for the words 'five years from the date of order of assessment by the assessing authority'], reassess the tax due after making such enquiry as it may consider necessary.(2)Where, for any reason, the input tax credit has been availed wrongly or where any dealer produces false bills, vouchers, declaration certificate or any other documents with a view to support his claim of input tax credit or refund, the assessing authority shall, at any time, within a period of [six years from the date of assessesment] [These words were substituted by Section 6 of the aforesaid Fifth Amendment Act, 23 of 2012 for the words 'five years from the date of order of assessment by the assessing authority'], reverse input tax credit availed and determine the tax due after making such a enquiry, as it may consider necessary:Provided that no order shall be passed under sub-sections (1) and (2) without giving the dealer a reasonable opportunity to show cause against such order.(3)In making an assessment under clause (a) of sub-section (1), the assessing authority may, if it is satisfied that the escape from the assessment is due to wilful non-disclosure of assessable turnover by the dealer, direct the dealer, to pay, in addition to the tax assessed under clause (a) of sub-section (1), by way of penalty a sum which shall be -(a)fifty per cent of the tax due on the turnover that was wilfully not disclosed if the tax due on such turnover is not more than ten per cent of the tax paid as per the return;(b)one hundred per cent of the tax due on the turnover that was wilfully not disclosed if the tax due on such turnover is more than ten per cent but not more than fifty per cent of the tax paid as per the return.(c)one hundred and fifty per cent of the tax due on the assessable turnover that was wilfully not disclosed, if the tax due on such turnover is more than fifty per cent of the tax paid as per the return;(4)in addition to the tax determined under sub-section (2), the assessing authority shall direct the dealer to pay as penalty a sum [which shall be three hundred percent of the tax due in respect of such claim;] [These words were substituted in Sub-section (4) of Section 27 as per Gazette No 217 dated 14.10.2015][omitted] [These words were substituted in Sub-section (4) of Section 27 as per Gazette No 217 dated 14.10.2015](5)The powers under sub-sections (1) and (2) may be exercised by the assessing authorities even though the original order of assessment, if any, passed in the matter has been the subject matter of an appeal or revision.(6)In computing the period of limitation for assessment or re-assessment under this section, the time during which the proceedings for assessment or re-assessment remained stayed under the orders of a Civil Court or other competent authority shall be excluded.(7)In computing the period of limitation for assessment or re-assessment under this section, the time during which any appeal or other proceeding in respect of any other assessment or reassessment is pending before the High Court or the Supreme Court involving a question of law having a direct bearing on the assessment or re-assessment in question, shall be excluded.(8)In computing the period of limitation for assessment or re-assessment under this section, the time during which any appeal or proceeding in respect of any assessment or re-assessment of the same or part of the turnover made under any other enactment was pending before any appellate or revisional authority or the High Court or the Supreme Court shall be excluded.
