2016 (8) TMI 399 - HC - VAT and Sales Tax

Court Upholds Independence of Assessing Officer in TN VAT Act Case

The court ruled in favor of the petitioner, a registered dealer under the TN VAT Act, in a writ petition seeking to prohibit the Assessing Officer from ... Writ of prohibition – reassessment – independence of judgement – Held that: - the Assessing Officer cannot be solely guided by the proposals given by the Inspecting Officers, but has to independently apply his mind and discharge duties enshrined on the Assessing Officer under the provisions of the Act, otherwise it would amount to abdication of the statutory duties – reasonable opportunity of being heard to the petitioner – writ petition disposed off – matter remanded. Issues:- Writ petition seeking prohibition of re-assessment under TN VAT Act- Concerns regarding Assessing Officer's independence and pre-decision- Application of judicial precedents on Assessing Officer's dutiesAnalysis:The petitioner, a registered dealer under TN VAT Act, filed a writ petition seeking to prohibit the Assessing Officer from proceeding with re-assessment following a notice for revision of assessments. The petitioner expressed concerns about the Assessing Officer's independence, fearing a lack of impartiality due to pre-decision based on instructions from higher authorities. The court noted that the Assessing Officer must act independently and not solely rely on higher authority directions, as established in previous judgments like Madras Granites (P) Ltd. Vs. C.T.O., Arisipalayam Circle and Narasus Roller Flour Mills Vs. C.T.O., Enforcement Wing, Sankagiri. The court emphasized that the Assessing Officer is a quasi-judicial authority and must exercise judgment without being bound by higher authority instructions to ensure assessments are legally sustainable.The court referred to the decision in Madras Granites (P) Ltd. case, highlighting that Assessing Officers should not base assessments solely on higher authority directions to maintain legal validity. Additionally, the court cited the Narasus Roller Flour Mills case, emphasizing that Assessing Officers must independently apply their minds and fulfill statutory duties to prevent abdication of responsibilities. Consequently, the court directed the Assessing Officer to independently review the matter, provide a fair opportunity to the petitioner, examine the Books of Accounts, verify details, and complete the assessment impartially. The Assessing Officer was instructed not to solely rely on the Deputy Commissioner's order but to act independently. The court ordered compliance within three weeks from the date of the order, disposing of the writ petition with no costs and closing connected Miscellaneous Petitions.