High Court remits matter for assessment redo following Second Revisional Authority's decision.

The High Court remitted the matter back to the respondent to consider the Second Revisional Authority's order and redo the assessment exercise accordingly. The Court directed the respondent to keep the proceedings in abeyance, follow the Second Revisional Authority's decision, provide a personal hearing to the petitioner, accept C-Forms if produced, and redo the assessment in line with the law. The impugned demands were not to be enforced until fresh orders were passed. Writ Petitions were disposed of with no costs, and connected Miscellaneous Petitions were closed.

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Issues:
Challenge to assessment orders imposing interest under TNVAT Act and CST Act for assessment years 2007-08 to 2012-13.

Analysis:
In this case, the petitioner, a registered dealer under TNVAT Act and CST Act, challenged assessment orders imposing interest under Section 42(3) of TNVAT Act and section 9(2-B) of CST Act for the years 2007-08 to 2012-13. The petitioner contended that the orders suffered from errors of law apparent on the face of the records and that the respondent failed to consider relevant provisions. They argued that the demand for interest was contrary to the provisions of the Acts. The petitioner relied on a Supreme Court judgment stating that where the tax is paid before the notice of assessment and demand, liability for interest does not arise. The petitioner also referred to Circulars issued by the Commissioner of Commercial Taxes regarding acceptance of certain forms after assessment completion.

The petitioner had previously filed Revision Petitions against an earlier assessment order, which were dismissed by the First Revisional Authority but allowed by the Second Revisional Authority. The High Court noted that since the petitioner succeeded before the Second Revisional Authority for identical transactions, that decision should bind the Assessing Officer. However, as the order from the Second Revisional Authority was passed after the impugned orders in this case, the Court decided to remit the matter back to the respondent to consider the Second Revisional Authority's order and redo the assessment exercise accordingly.

As a result, the Court directed the respondent to keep the impugned proceedings in abeyance, follow the Second Revisional Authority's decision, provide a personal hearing to the petitioner, accept C-Forms if produced, and redo the assessment in line with the law. Until the fresh orders are passed, the impugned demands should not be enforced. The Writ Petitions were disposed of with no costs, and connected Miscellaneous Petitions were closed.

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