Conditional reopening of VAT assessment allowed with 15% deposit and fresh objection hearing before reassessment.

In proceedings under Section 27 of the Tamil Nadu Value Added Tax Act, 2006, the Court permitted the assessee to file objections and supporting documents against an assessment based on a surprise inspection, where input tax credit had been rejected for want of purchase bills. To balance the parties' interests, the opportunity was made conditional on payment of 15% of the disputed tax. Upon compliance, the Assessing Officer was directed to consider the objections, grant personal hearing, and redo the assessment in accordance with law.

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Issues: Whether the assessee should be given one more opportunity to contest the assessment by filing objections and producing supporting documents, subject to compliance with a partial tax deposit condition, in proceedings under Section 27 of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The assessment was based on a surprise inspection and the assessee's claim for input tax credit was not accepted on the ground that purchase bills were not produced. The Court noted the assessee's request for an opportunity to place all materials before the Assessing Officer and found it to permit a fresh objection in the nature of a reply to the impugned proceedings. To balance the interests of the parties, the Court imposed a condition of payment of 15% of the disputed tax and directed the Assessing Officer to consider the objections, grant personal hearing, and redo the assessment in accordance with law.

Conclusion: The assessee was granted a conditional opportunity to reopen the assessment process, and the matter was left to be reconsidered by the Assessing Officer upon compliance with the deposit condition.

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