High Court overturns VAT application rejection under Section 84, emphasizes document review.

The High Court allowed the Writ Petition challenging the rejection of the application under Section 84 of the Tamil Nadu Value Added Tax Act. The Court held that the rejection based on missing documents not previously requested was an error apparent on the face of the assessment order. The petitioner's documents supported their claim that the transactions related to the Head Office in Hyderabad, as disclosed in the earlier balance sheet. The impugned order was quashed, and the matter was remanded for fresh consideration, emphasizing the importance of reviewing the petitioner's submissions under Section 84.

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Issues:
Challenge to rejection of application under Section 84 of the Tamil Nadu Value Added Tax Act.

Analysis:
The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act, challenged the rejection of their application under Section 84 of the Act through a Writ Petition. The petitioner, a Public Limited Company engaged in trading activities of iron and steel, faced a notice proposing to revise an earlier assessment due to alleged discrepancies in reporting sales of assets. The petitioner contended that the balance sheet inspected was a consolidated statement for all subsidiary companies, not specific to the Chennai Branch. Despite providing explanations and supporting documents, the respondent issued an assessment order demanding tax and penalty.

The respondent, in defense, argued that Section 84 of the Act could only rectify errors apparent on the face of the record, excluding post-assessment submissions. However, the High Court analyzed Section 84 and emphasized that it allows rectification of any error on the face of the record, not limited to arithmetical or clerical errors. The Court noted that the assessment order was based on a new premise not raised in the pre-revision notice, rejecting the petitioner's contentions for not providing specific documents not previously requested.

The Court found that the respondent's rejection of the petitioner's claim based on missing documents not called for during the process was an error apparent on the face of the assessment order. The documents provided by the petitioner were not new but supported their assertion that the transactions were related to the Head Office in Hyderabad, as disclosed in the balance sheet submitted earlier. Consequently, the Court allowed the Writ Petition, quashed the impugned order, and remanded the matter to the respondent for fresh consideration, emphasizing the importance of considering the documents submitted by the petitioner under Section 84, after granting a personal hearing and passing a reasoned order in accordance with the law.

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