Independent consideration of objections required before disallowing input tax credit; mechanical reliance on enforcement proposal is impermissible.

Input tax credit disallowance could not be sustained where the assessee had produced transaction details, seller registration particulars and invoices, thereby discharging the initial burden under the Tamil Nadu VAT Act. The assessing authority was required to examine the objections independently, apply its mind to the materials and accounts produced, and give reasons for any adverse conclusion. A mechanical reliance on the Enforcement Wing proposal, without independent consideration of the assessee's objections, was impermissible. The assessment orders were therefore set aside and the matter was remanded for fresh assessment after due consideration of the objections and supporting materials.

---

---

Issues: Whether the assessment orders disallowing input tax credit could be sustained when the Assessing Officer did not independently consider the objections and instead relied on the Enforcement Wing proposal.

Analysis: The petitioner had furnished the relevant transaction details, including the sellers' registration particulars and invoices, so as to discharge the initial burden under Section 19(10)(a) of the Tamil Nadu Value Added Tax Act, 2006. Once such material was placed on record, the Assessing Officer was required to examine the objections on their own merits and pass a reasoned order. The impugned assessments, however, showed no independent consideration of the objections and were based essentially on the enforcement proposal. Such a mechanical approach was held to be impermissible, and the objections could not be rejected without application of mind to the materials and accounts produced.

Conclusion: The assessment orders were unsustainable and were set aside.

Final Conclusion: The matters were remanded to the Assessing Officer for fresh assessment after due consideration of the objections and the materials produced by the petitioners.

Ratio Decidendi: An assessing authority must independently consider objections to a proposed assessment and cannot sustain a tax demand by mechanically adopting an enforcement proposal without giving reasons on the assessee's materials.

---