Court sets aside order, remits for fresh consideration under Tamil Nadu Sales Tax Act.

The Court set aside the respondent's order rejecting the petitioner's application under section 16D of the Tamil Nadu General Sales Tax Act for assessment years 2004-05 and 2005-06, remitting the matter back for fresh consideration. The Court emphasized the need for thorough review by the committee and reasoned decisions, highlighting concerns over the assessment process and lack of independent application of mind by the assessing authority. The writ petitions were disposed of without costs incurred, and related motions were closed following the judgment.

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Issues involved: Application u/s 16D of Tamil Nadu General Sales Tax Act, 1959 for assessment years 2004-05 and 2005-06 rejected by committee based on various grounds including suppression of turnover and lack of natural justice principles.

Summary:

The petitioner applied u/s 16D of the Act before the committee challenging the assessment made on them for the years 2004-05 and 2005-06. The committee rejected the application citing reasons such as issuance of notices to dealers, rejection of deviation proposal by Joint Commissioner, and alleged suppression of turnover. The petitioner contended that the assessment was arbitrary and lacked independent application of mind by the assessing authority.

The Court noted that u/s 16D, the Special Committee has the authority to examine records of assessing authority and pass orders if violations of the Act or Rules are found. The petitioner raised concerns about the assessment process and lack of proper consideration by the assessing authority. The first respondent upheld the assessment based on grounds of turnover suppression and rejection of deviation proposal.

Considering the petitioner's challenge to the assessment and the corrective role of the committee, the Court set aside the respondent's order and remitted the matter back for fresh consideration. The Court emphasized the need for the committee to thoroughly review issues raised by the petitioner and provide reasoned decisions. The writ petitions were disposed of with no costs incurred. M. P. Nos. 1, 1, 2, and 2 of 2009 were closed as a result of this judgment.

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