Double taxation safeguard under VAT law requires merits-based reconsideration after hearing, with practical verification of contractors' tax compliance.

The assessing authority must consider an application under Section 84 of the Tamil Nadu Value Added Tax Act on merits after granting personal hearing and pass a reasoned order. The authority is not under a direct statutory duty to verify the contractors' returns with their assessing officers, but it should use official machinery where necessary to ensure the same transaction is not taxed twice. The text notes that the petitioner claimed tax had already been accounted for and paid by the contractors, so the verification exercise should be confined to confirming the factual position before deciding the application in accordance with law.

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Issues: Whether the assessing authority should consider the petitioner's application under Section 84 of the Tamil Nadu Value Added Tax Act, 2006, verify whether the relevant turnover had already been reported and tax paid by the contractors, and pass a fresh order after hearing the petitioner.

Analysis: The petitioner sought relief against levy of tax on the footing that tax at source had not been deducted, while asserting that the contractors had represented that they would account for and pay the tax. The Court noted the absence of any statutory duty on the petitioner's assessing authority to directly verify with the contractors' assessing officers, but also observed that the authority should ensure that the same transaction is not taxed twice. To meet that concern, the Court directed a practical course whereby the assessing authority could use its official machinery to verify the factual position or seek the necessary declaration from the other assessing officers. The application under Section 84 was therefore required to be considered on merits after affording personal hearing.

Conclusion: The assessing authority was directed to consider the petitioner's application, afford personal hearing, and pass a reasoned order in accordance with law.

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