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of <h1>High Court quashes assessment order due to stock discrepancies, overturns Tribunal decision.</h1> <h3>M/s Mahaveer Electric Agencies Versus The Tamil Nadu Sales Tax Appellate Tribunal (Addl. Bench), The Appellate Assistant Commissioner (CT) I, The Commercial Tax Officer</h3> M/s Mahaveer Electric Agencies Versus The Tamil Nadu Sales Tax Appellate Tribunal (Addl. Bench), The Appellate Assistant Commissioner (CT) I, The ... Issues involved:Interpretation of Government Order regarding stock discrepancies less than 2% of total volume of business; Validity of assessment order based on stock variation exceeding 2%; Correctness of Appellate Tribunal's decision on stock variation discrepancy.Analysis:The Writ Petition challenged an order passed by the first respondent, focusing on the issue of stock variation less than 2% of the total volume of business during an inspection by Enforcement Wing Officials. A Government Order from 1988 addressed concerns raised by traders regarding the evaluation of stock during inspections, suggesting that discrepancies not exceeding 2% may be ignored based on the assessee's past performance. However, it was clarified that if the assessee had previous adverse interactions with the Department, the discrepancy could not be automatically ignored, necessitating a case-specific assessment.The petitioner's business was inspected, revealing stock variation leading to an assessment order for the year 1998-99 under the Tamil Nadu General Sales Tax Act. Despite the petitioner claiming the stock difference exceeded 2%, the Assessing Officer's order lacked specific details on total stock, resulting in an appeal to the Appellate Assistant Commissioner. The Appellate Authority, considering records and a stock reconciliation statement, allowed the appeal. Subsequently, the Revenue appealed to the Sales Tax Appellate Tribunal, which overturned the decision, prompting the Writ Petition.The High Court scrutinized the Tribunal's order and found it deficient in assessing the correctness of the Appellate Assistant Commissioner's findings. The Tribunal's reliance on the Assessing Officer's order without justifying the reversal and lack of specific findings on the Appellate Assistant Commissioner's alleged error rendered the decision erroneous and perverse. Consequently, the Court intervened, allowing the Writ Petition, quashing the impugned order, and closing the case without costs.
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