Conditional remand in VAT assessment disputes may be granted to permit fresh proof, subject to deposit safeguarding revenue interests.

A conditional remand may be granted to allow a dealer to produce original records and substantiate an option claimed under the Tamil Nadu VAT regime. The dispute concerned whether assessments should have proceeded under one charging provision instead of another, and the dealer sought a further opportunity to support its claim after the matter remained pending for years. The court balanced that request against revenue protection and permitted fresh adjudication only on strict compliance with a deposit condition. On payment of half of the disputed tax for each assessment year within time, the assessment orders were to be treated as show cause notices and decided afresh on merits.

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Issues: Whether the writ appeals against the assessment orders deserved interference and remand to enable the dealer to produce original records and establish the claimed option under Section 6 of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The challenge to the assessments centred on the dealer's claim that option letters had been filed for assessment under Section 6 and that the assessments ought not to have proceeded under Section 5. The Court noted that the dispute had remained pending for several years, that the assessment orders had not yet yielded recovery of the disputed tax and penalty, and that the dealer sought one further opportunity to substantiate its stand by producing original records. In these circumstances, the Court found it to grant a final opportunity, but only on strict compliance with a monetary condition to secure the revenue interest.

Conclusion: The appeals were allowed in part, the order of the learned Single Judge was set aside, and the matter was remanded to the Assessing Officer subject to payment of 50% of the disputed tax for each assessment year within the stipulated time. On compliance, the assessment orders were to be treated as show cause notices and decided afresh on merits.

Final Conclusion: The dealer obtained a conditional remand for fresh adjudication, but only upon timely deposit of half of the disputed tax for each year.

Ratio Decidendi: A remand for fresh assessment may be granted to enable production of original records and consideration on merits, but such discretionary relief can be made conditional upon prior deposit of a substantial portion of the disputed tax to safeguard revenue interests.

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