Court sets aside assessment orders under TN VAT Act, emphasizes proper determination of invisible loss and detailed justifications

The court set aside the assessment orders under the Tamil Nadu Value Added Tax Act, 2006 for the years 2012-13 to 2015-16. The court emphasized the necessity for proper determination of invisible loss, complete details provision, reasons for rejecting contentions, and independence of assessing officers. The interference by the enforcement officer led to cryptic assessment orders, prompting the court to remand the matters for fresh consideration by the respondent, stressing the importance of following legal procedures and providing detailed justifications for decisions.

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Issues: Challenge to assessment orders under Tamil Nadu Value Added Tax Act, 2006 for the years 2012-13 to 2015-16.

Analysis:
1. Invisible Loss: The assessing officer pointed out four issues in the pre-revision notices, including invisible loss. The petitioner challenged the computation of invisible loss at two percent, citing a previous court decision. The court noted that the respondent did not consider the proper determination of invisible loss as directed by previous court judgments.

2. Mismatch of Details: The petitioner disputed the mismatch of details from the official website, arguing that full details were not provided. The court emphasized the necessity for the assessing officers to furnish complete details to the dealers and conduct a thorough inquiry with all involved parties before making assessments.

3. Discrepancy in Accounts and Discount Issue: The petitioner explained discrepancies in accounts and discount matters, but the respondent rejected their contentions without providing adequate reasons. The court highlighted the importance of the respondent assigning reasons for rejecting contentions raised by the petitioner.

4. Enforcement Officer's Direction: The court observed that the enforcement officer's directive to implement a proposal interfered with the independent powers of the assessing officer. This interference led to cryptic assessment orders, prompting the court to set aside the impugned orders and remand the matters for fresh consideration by the respondent, emphasizing the need for full details, additional objections, personal hearing, and lawful assessments.

In conclusion, the court set aside the assessment orders and remanded the matters back to the respondent for proper consideration, emphasizing the importance of following legal procedures and providing detailed justifications for decisions.

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