Rectification for apparent error under VAT law must be considered on merits despite availability of an appellate remedy.
Section 84 of the Tamil Nadu Value Added Tax Act allows the assessing authority to rectify an error apparent on the face of the record within five years, and that power remains available even if an appeal or revision lies or has been filed. The authority must examine the assessee's rectification request on its own merits, based on the materials produced, and cannot reject it solely because an appellate remedy exists. The representation was therefore required to be considered in accordance with law after hearing the assessee, and the objection based on non-availment of appeal was rejected.
Issues: Whether the assessing authority was bound to consider the assessee's representation seeking rectification of an alleged apparent error under Section 84 of the Tamil Nadu Value Added Tax Act, 2006, notwithstanding the availability of an appellate remedy.
Analysis: Section 84(1) empowers the assessing authority to rectify any error apparent on the face of the record within five years from the date of the order. Section 84(4) makes it clear that this power is available even if the original assessment order has been carried in appeal or revision. The question whether there is an apparent error has to be decided by the assessing authority on the basis of the materials placed by the assessee. The existence of an appeal remedy does not bar consideration of a rectification request under Section 84.
Conclusion: The representation under Section 84 was required to be considered on merits by the assessing authority, and the objection based on non-availment of appeal was rejected.
Final Conclusion: The writ petition succeeded to the extent of securing a direction for consideration of the rectification request in accordance with law after hearing the assessee.
Ratio Decidendi: The statutory power of rectification for an apparent error can be exercised independently of the appellate remedy, and the assessing authority must decide such a request on merits within the statutory period.
TaxTMI 
AI Drafter ✕
TaxTMI 
