Court Invalidates Assessment Order & Pre-Revision Notice: Lack of Evidence, Premature Demands, Due Process Violation

The High Court found the assessment order and pre-revision notice legally flawed due to lack of proper consideration of evidence, premature demands, and failure to follow due process. The court quashed the assessment order and pre-revision notice, allowing the respondent to initiate fresh action in compliance with the law. No costs were imposed on the parties, and connected miscellaneous petitions were closed.

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Issues:
Challenging assessment order under TNVAT Act, 2006 and CST Act, 1956 for the year 2014-2015.

Analysis:
The petitioner, a dealer in raw rubber sheets, challenged the assessment order dated 15.06.2016 for the year 2014-2015. The respondent alleged that purchases from specific dealers were bogus, leading to input tax credit reversal and a demand of Rs. 68,93,000 along with interest. The petitioner objected, citing genuine transactions supported by invoices and bank transactions. The respondent completed assessment cryptically, ignoring evidence presented, indicating a lack of application of mind. The respondent failed to provide relevant documents and prematurely demanded payment, rendering the assessment order defective and pre-judged.

Conclusion:
The High Court found the assessment order and pre-revision notice to be legally flawed due to lack of proper consideration of evidence, premature demands, and failure to follow due process. The court quashed the impugned assessment order and pre-revision notice, allowing the respondent to initiate fresh action in compliance with the law. The judgment did not impose any costs on the parties involved, and connected miscellaneous petitions were closed as a result.

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