Deemed assessment under VAT law bars enforcement of a belated order, but reopening remains available for return discrepancies.

A deemed assessment under the Tamil Nadu Value Added Tax Act takes effect on the statutory cut-off date, so a separate assessment order passed later cannot be enforced. However, that deeming rule does not bar further action where scrutiny shows discrepancies or inconsistencies in the returns; in such a situation, the assessing authority must proceed under the reopening machinery rather than rely on the belated order. The Madras HC therefore treated the impugned assessment order as unenforceable, while preserving the revenue's right to initiate reopening proceedings in accordance with law.

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Issues: Whether an assessment order passed after the statutory deemed-assessment date under the Tamil Nadu Value Added Tax Act, 2006 could be enforced, and whether the revenue could nevertheless proceed by reopening the assessment if discrepancies were found in the returns.

Analysis: The proviso to Section 22(2) of the Tamil Nadu Value Added Tax Act, 2006 creates a deemed assessment on the prescribed date for the relevant return years, so a separate assessment order cannot be enforced after that cut-off. At the same time, the Court held that this does not create an absolute bar against further action where scrutiny reveals discrepancies or inconsistencies in the returns. In such a situation, the proper course is to invoke the reopening machinery under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 rather than enforce the belated assessment order.

Conclusion: The impugned assessment order could not be enforced, but the authority was left free to initiate reopening proceedings in accordance with law. The writ petition was therefore decided in favour of the assessee.

Ratio Decidendi: Once a statutory deemed assessment has taken effect, a belated assessment order cannot be enforced, though the assessing authority may still reopen the assessment under the prescribed provision if discrepancies in the return are found.

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