Advance ruling bar on assessment action rendered the assessment order invalid when issued before communication of the ruling.

Assessment proceedings initiated and completed before communication of a pending advance ruling under the Andhra Pradesh Value Added Tax Act, 2005 were contrary to the statutory scheme. The provision governing advance rulings barred initiation or continuation of assessment action while the ruling process remained pending, and the show-cause notice and assessment order were issued before the ruling was communicated to the dealer. On that basis, the assessment order was invalid and liable to be quashed, though fresh assessment could be taken up in accordance with law.

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Issues: Whether the assessment proceedings and the assessment order were invalid for having been initiated and completed before communication of the advance ruling, in breach of the statutory scheme governing advance rulings under the Andhra Pradesh Value Added Tax Act, 2005.

Analysis: The assessment was initiated while the advance ruling application was still pending and before the ruling was communicated to the dealer. The statutory framework required the Advance Ruling Authority to pronounce its ruling within the prescribed time, and section 67(3) barred initiation or continuation of assessment proceedings in disregard of that pending ruling process. Since the show-cause notice and the assessment order were issued before communication of the ruling, the assessment action was contrary to the statutory mandate. The revenue fairly conceded the point.

Conclusion: The assessment order was invalid and liable to be quashed. Fresh assessment could be initiated in accordance with law.

Ratio Decidendi: Where the statute suspends or restricts assessment action pending communication of an advance ruling, any assessment initiated or completed in breach of that statutory bar is invalid.

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