Rectification of apparent error under VAT law requires merits-based consideration and a prior hearing before rejection

Section 84 of the Tamil Nadu Value Added Tax Act permits rectification of any error apparent on the face of the record, and sub-section (4) allows that power to be exercised even where the assessment has already been appealed or revised. A rejection of a rectification application without deciding the merits and without affording the applicant an opportunity of hearing was not sustainable. The rejection order was therefore set aside, and the matter was remitted for fresh consideration on merits after due hearing.

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Issues: Whether the rejection of the petitioner's application for rectification of an apparent error under Section 84 of the Tamil Nadu Value Added Tax Act, 2006 was sustainable, and whether the matter required reconsideration after affording an opportunity of hearing.

Analysis: The rectification provision empowers the assessing authority to correct any error apparent on the face of the record, and sub-section (4) permits exercise of that power even when the original assessment has been the subject of appeal or revision. The impugned rejection was made without a decision on merits and without affording the petitioner an opportunity before declining to entertain the application. In such circumstances, the rejection could not stand, as the statutory power under Section 84 had to be exercised in accordance with law and after giving due opportunity.

Conclusion: The rejection order was unsustainable and was set aside. The matter was remitted to the respondent for fresh consideration on merits after giving the petitioner due opportunity of hearing.

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