Deemed completion under VAT law and release of bank guarantees to be decided by the assessing authority on merits

Where disputed facts existed on whether assessments had been deemed completed under section 22(2) of the Tamil Nadu Value Added Tax Act, 2006, the proper course was for the dealer to make a detailed representation to the assessing officer. The assessing authority was to examine the factual and legal position, give an opportunity of hearing, and pass a reasoned order on merits in accordance with law. The earlier writ direction was modified to this limited extent, and the authority was required to consider the request for release of the bank guarantees within the stipulated time.

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Issues: Whether the appellant should be directed to pursue the statutory assessing authority for release of the bank guarantees and for consideration of its claim that the assessments stood deemed completed under section 22(2) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The dispute involved serious questions of fact, including the appellant's claim that the relevant assessments had already been deemed completed and that no further proceedings had been initiated. In such circumstances, the proper course was for the appellant to make a detailed representation to the assessing officer, who could examine the factual and legal position, afford an opportunity of hearing, and pass a reasoned order on merits in accordance with law. The earlier direction of the writ court was modified to this limited extent.

Conclusion: The appellant was required to approach the assessing officer for release of the bank guarantees, and the authority was bound to decide the representation on merits within the stipulated time.

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