Turnover revision objections require verification and hearing before recovery action can proceed under the tax law.

Proposed turnover and tax revisions under the Tamil Nadu Value Added Tax Act, 2006 were not permitted to be enforced immediately because the dealer's objections had not yet been properly verified against the audited trial balance and profit and loss account. The Court held that the objections required consideration on the basis of supporting proof and that the dealer had to be given an opportunity to place the relevant documents before further recovery action. The recovery measures were therefore kept in abeyance and the matter was remitted for reconsideration after hearing the dealer and passing fresh orders in accordance with law.

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Issues: Whether the assessment revisions and recovery notices could be sustained when the dealer contended that its objections had not been effectively verified on the basis of the audited trial balance and profit and loss account, and whether the dealer was entitled to an opportunity to place proof of objections before further recovery action was taken.

Analysis: The dispute arose out of proposed revisions of turnover and tax liability under the Tamil Nadu Value Added Tax Act, 2006, followed by recovery steps under Section 45. The dealer had raised objections to the proposed additions and expressed readiness to substantiate them with audited accounts, while the Department maintained that the objections could be verified only on production of the relevant audited trial balance and profit and loss account. The Court found that the material already available showed that the dealer had been assessed earlier and that the objections required consideration on the basis of proof to be furnished. In these circumstances, the proper course was to permit the dealer to place supporting documents and for the Department to reconsider the objections on merits after giving a hearing.

Conclusion: The impugned recovery measures were not allowed to proceed immediately, and the matters were remitted to the Department to receive the dealer's proof of objections, afford an opportunity of hearing, and pass fresh orders in accordance with law.

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