Exemption for sub-contractor payments set aside and remanded for fresh, reasoned consideration after proper examination of records.

Rejection of exemption claimed for payments to sub-contractors under Rule 8(5)(c) was set aside because the assessing authority had not considered the objections in the proper perspective or given adequate reasons. The High Court held that the claim required fresh examination of the records relating to the sub-contractors, and the matter was therefore remanded for de novo consideration by a speaking order after affording personal hearing. The assessee succeeded on this issue.

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Issues: Whether the assessment orders were liable to be set aside and remanded on the ground of rejection of the claim of exemption on payments to sub-contractors under Rule 8(5)(c) of the Tamil Nadu Value Added Tax Rules, 2007.

Analysis: The assessment orders were challenged only on the issue of rejection of exemption claimed for payments made to sub-contractors. The Court followed its earlier order on a similar issue, noting that the assessing authority had not dealt with the objections in a proper perspective or given reasons for rejecting the claim. Since the claim involved consideration of the records relating to the sub-contractors and required a fresh examination, the matter was found fit for remand for de novo consideration by a speaking order after affording an opportunity of personal hearing.

Conclusion: The finding rejecting exemption on payments to sub-contractors was set aside and the matter was remanded for fresh consideration. The assessee succeeded on this issue.

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