Assessing Officer's Failure to Exercise Independent Power Deemed Unlawful

The High Court found that the Assessing Officer failed to exercise quasi-judicial power independently in assessing a registered dealer under the Tamil Nadu Value Added Tax Act and Central Sales Tax Act. The Court emphasized the duty of the Assessing Officer to assess objectively and not merely follow proposals, noting errors in not allowing the dealer to produce records and denying a personal hearing. As a result, the impugned assessment orders for the years 2006-07 to 2012-13 were deemed unlawful, quashed, and the Assessing Officer was directed to ensure a fair assessment process by allowing the dealer to produce relevant records.

---

---

Issues: Challenge to impugned orders of assessment for Assessment Years 2006-07 to 2012-13 under Tamil Nadu Value Added Tax Act and Central Sales Tax Act.

Analysis:
The petitioner, a registered dealer, contested assessment orders for several years. The Enforcement Wing found defects during an inspection, leading to notices being issued. The petitioner submitted replies and relevant documents, offering to produce purchase bills for verification. Despite representations, the Assessing Officer passed assessment orders alleging non-cooperation and rejecting objections. The High Court noted the Assessing Officer's failure to exercise quasi-judicial power independently. Referring to a previous case, the Court emphasized the Assessing Officer's duty to assess objectively, not merely follow proposals. The Court found the Assessing Officer erred in not allowing the petitioner to produce records and dismissing their claims. The Court deemed the denial of a personal hearing as contrary to legal principles. Consequently, the impugned orders were deemed unlawful, quashed, and the Assessing Officer directed to issue a summons for the petitioner to produce all relevant records, ensuring a fair assessment process.

---