Challenging Unfair Tax Assessment: M/s.SL Lumax Limited’s Plea for Justice”

Comment

The assessing officer’s role is pivotal in determining the classification of goods and subsequent tax implications. It is imperative for the assessing officer to objectively consider all materials and precedents presented by the petitioner before concluding the assessment. The principles of natural justice dictate that the petitioner be afforded a fair opportunity to present its case and challenge the assessment.

Pleading

The petitioner, M/s.SL Lumax Limited, seeks the issuance of a Writ of Certiorari under Article 226 of the Constitution of India, calling for the records and quashing the impugned show cause notices dated 31.01.2024, issued by the Deputy Commissioner of State Taxes-II, Large Taxpayer Unit, Integrated Commercial Taxes Building, Nandanam, Chennai.

Facts

The petitioner, engaged in manufacturing electrical lighting or signaling equipment used in motor vehicles, received show cause notices challenging the classification of goods under Chapter 8708 instead of Chapter 8512 for different assessment periods. The notices were issued despite the petitioner’s contention of correct classification under Chapter 8512 and the reduction of tax rate to 18% from 14.11.2017. The impugned notices, prima facie indicative of pre-judgment, directed the petitioner to pay specified amounts without providing an opportunity to challenge the assessment.

Observation

The assessing officer, in issuing the show cause notices, displayed pre-judgment by quantifying the payable amounts without allowing the petitioner to contest the assessment. Such notices are issued as a starting point, and the assessing officer should complete the assessment impartially, considering all relevant material.

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