Pending review of tax-rate clarification, interim assessment at 5% was directed until the review outcome.

A pending review of a tax-rate clarification justified interim protection in the assessment process: the dealer was directed to file a review petition under the Tamil Nadu Value Added Tax Act, 2006, and the authority was asked to consider it with connected review petitions and decide expeditiously. Until that review is decided, the assessing authority must assess the dealer at 5% on plant and machinery, with the revised assessment to follow the review outcome. The arrangement was made to protect both the dealer and the revenue while the clarification remained under reconsideration.

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Issues: Whether the assessment could proceed on the basis of the existing clarification while a review of that clarification was pending, and whether the petitioner was entitled to assessment at the lower rate until the review was decided.

Analysis: The petitioner had objected to revision of assessment on the footing that a review petition challenging the clarification on rate of tax was already in motion and that the issue should await the outcome of the review. The Court noted that a similarly placed dealer had been directed to pursue review before the authority, and that the matter was pending consideration. To protect both the dealer and the revenue, the Court directed the petitioner to file a review petition under Section 48-A(4) of the Tamil Nadu Value Added Tax Act, 2006, and directed the authority to consider it along with connected review petitions and decide the matter expeditiously. Until such decision, the assessing authority was directed to assess the petitioner at 5% on plant and machinery, with the revised assessment to follow the decision on review.

Conclusion: The petitioner was granted interim relief in the assessment proceedings, and the matter was directed to await the decision on review of the clarification.

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