Rectification of apparent errors may permit a pure legal VAT contention to be raised before the appellate authority.

A pure legal contention in Tamil Nadu VAT assessment, including the treatment of tax collected and input tax credit, may be raised through rectification where it involves an error apparent on the face of the record. Section 84 of the Tamil Nadu Value Added Tax Act, 2006 authorises rectification by the Assessing Authority and the Appellate Authority within the prescribed period. Although the ground had not been specifically raised earlier, the assessee was given one opportunity to move an application under Section 84 before the appellate authority, which was directed to consider it on merits and in accordance with law.

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Issues: Whether the assessee, having not raised a legal ground in the earlier proceedings, could be permitted to invoke rectification and place the contention before the appellate authority under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The dispute concerned assessment under the Tamil Nadu Value Added Tax Act, 2006 and the order of the appellate authority. The legal contention related to the treatment of tax collected and the claim of input tax credit, which was held to be capable of being considered as a legal ground. The statutory scheme under Section 84 permits the Assessing Authority and the Appellate Authority to rectify an error apparent on the face of the record within the prescribed period. Though the ground had not been specifically raised earlier, the Court held that the assessee should be given one opportunity to place the contention before the appellate authority by an application under Section 84.

Conclusion: The assessee was permitted to file an application under Section 84 before the appellate authority within the time granted, and the authority was directed to consider it on merits and in accordance with law.

Ratio Decidendi: A pure legal contention relating to tax assessment may be permitted to be raised through rectification proceedings where the statute authorises correction of apparent errors.

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