Adjustment of excess tax against demand must be considered as a Section 84 petition with personal hearing and interim recovery stay.

The Madras HC directed the respondent to examine whether excess tax allegedly paid could be adjusted against the demand raised under the impugned order. The representation was to be treated as a petition under Section 84 of the Tamil Nadu Value Added Tax Act, and the petitioner was to be given a personal hearing before a speaking order was passed within the stipulated time. Recovery proceedings were stayed only to the extent of the amount claimed for adjustment, pending that decision.

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Issues: Whether the petitioner's request for adjustment of excess tax paid against the tax demanded under the impugned order should be considered as a petition under Section 84 of the Tamil Nadu Value Added Tax Act and decided after affording a personal hearing.

Analysis: The writ petition was disposed of by directing the respondent to examine whether the amount claimed as excess payment could be adjusted against the demand raised under the impugned order. The respondent was also directed to treat the representation as a petition under Section 84 of the Tamil Nadu Value Added Tax Act, afford the petitioner a personal hearing, and pass a speaking order within a stipulated time. Pending such decision, recovery to the extent of the amount sought for adjustment was stayed.

Conclusion: The petitioner was granted a direction for consideration of the adjustment claim and interim protection against recovery to that extent.

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