Court annuls recovery notice under Tamil Nadu VAT Act for non-service of assessment orders

The court annulled the recovery notice demanding payment under the Tamil Nadu Value Added Tax Act for the periods 2008-09 to 2015-16 due to non-service of assessment orders. The petitioner's challenge was successful as it was revealed that the assessment orders were not served but returned. The recovery notice was deemed baseless, and the interim stay on recovery was extended for four weeks. The writ petition was disposed of with no costs incurred.

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Issues:
Challenge to order of Assistant Commissioner regarding demands under Tamil Nadu Value Added Tax Act, 2006 for the periods 2008-09 to 2015-16 due to lack of assessment orders.

Analysis:
The petitioner contested the order of the Assistant Commissioner demanding payment of &8377; 1,38,94,846 for the mentioned periods, arguing that no assessment orders were issued, rendering the demands invalid. Upon submission by the Government Advocate that assessment orders were passed for 2013-14, 2014-15, and 2015-16, the court directed the production of these orders and proof of service to the petitioner. Subsequently, it was revealed that the assessment orders for the entire period in question were circulated but not served due to being returned. The petitioner's counsel acknowledged receiving the assessment orders and assured their delivery to the petitioner.

In light of the non-service of the assessment orders leading to the disputed demands, the court deemed the recovery notice baseless and annulled it. The interim stay on recovery, granted earlier, was extended for four weeks to allow the petitioner time to respond to the assessment orders. Consequently, the writ petition was disposed of accordingly, with no costs incurred.

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