Independent reassessment and disclosure of relied-upon material are essential; mechanical reliance on enforcement findings vitiated the tax orders.

Reassessment under the TNVAT Act must be based on the assessing authority's independent appraisal of the material and not on a mechanical adoption of an Enforcement Wing report. Here, the same disputed material was applied across multiple years without fresh examination, so the reassessment was treated as vitiated for non-application of mind. The orders were also held to breach natural justice because the documents relied upon, including purchase details and lorry receipt material, were not furnished before completion, causing prejudice despite the burden of proof provisions. The assessment orders were quashed and remanded for fresh consideration after disclosure of the relied-upon documents and a personal hearing.

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Issues: (i) Whether the reassessment orders under Section 27(2) of the Tamil Nadu Value Added Tax Act, 2006 were vitiated for want of independent application of mind and for mechanically relying on the Enforcement Wing report. (ii) Whether the orders were vitiated for violation of natural justice by not furnishing the documents relied upon before completing the reassessment.

Issue (i): Whether the reassessment orders under Section 27(2) of the Tamil Nadu Value Added Tax Act, 2006 were vitiated for want of independent application of mind and for mechanically relying on the Enforcement Wing report.

Analysis: The assessment records showed that the disputed lorry receipt pertained only to one assessment year, yet the same reasoning was applied across all years. The petitioner consistently denied inter-State purchases or sales and disputed the evidentiary basis of the proposal. In such circumstances, the assessing authority was required to make an independent assessment and not merely adopt the Enforcement Wing findings without examining the material afresh.

Conclusion: The reassessment orders were held to be vitiated by non-application of mind and could not be sustained.

Issue (ii): Whether the orders were vitiated for violation of natural justice by not furnishing the documents relied upon before completing the reassessment.

Analysis: The petitioner had specifically sought copies of the documents relied upon for the proposed revision, including the relevant purchase details and lorry receipt material. The record indicated that those materials were not furnished before passing the orders, although they formed the basis of the reassessment. Since the burden of proof under Section 17 did not dispense with the duty to disclose relied-upon material, the denial of such documents caused prejudice.

Conclusion: The reassessment orders were held to have been passed in violation of natural justice.

Final Conclusion: The assessment orders were quashed and the matters were sent back for fresh consideration after supplying the relied-upon documents and giving a personal hearing.

Ratio Decidendi: A reassessment under the TNVAT Act must rest on an independent appraisal of the material and cannot be sustained when the authority withholds the documents relied upon and mechanically adopts an Enforcement Wing report.

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