Assessment under inapplicable tax provision set aside for failure to examine transaction nature and dealer's objection.

An assessment under the Tamil Nadu Value Added Tax Act could not be sustained where the assessing authority invoked an inapplicable provision without first examining the true nature of the transaction or the dealer's objection that it was not a works contract. The court held that the specific objection required consideration before determining the governing provision, and the order was therefore set aside. The matter was remitted for fresh consideration, with directions to consider the dealer's objections, grant personal hearing, and pass a fresh order on merits in accordance with law.

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Issues: Whether the revision of assessment under the Tamil Nadu Value Added Tax Act, 2006 could be sustained when the assessing authority invoked Section 6(2) without properly examining the nature of the transaction and the objection that the dealer was not a works contract dealer.

Analysis: The assessment order showed that the authority proceeded on the basis that the dealer had not exercised an option under Section 6(2) and rejected the objection without adequately examining whether that provision was at all applicable to the transaction. The Court found that the specific objection required consideration and that the nature of the transaction had to be determined before identifying the provision of law governing the assessment.

Conclusion: The assessment order could not be sustained and was set aside for fresh consideration by the respondent.

Final Conclusion: The matter was remitted to the assessing authority to consider the dealer's objections, grant personal hearing, and pass a fresh order on merits in accordance with law.

Ratio Decidendi: An assessment based on an inapplicable statutory provision, without examining the true nature of the transaction and the assessee's specific objection, cannot be sustained and must be reconsidered.

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