Court sets aside assessment order, directs fresh assessment adhering to Narasus and Madras granite principles.

The court set aside the assessment order due to the violation of Narasus and Madras granite principles. It directed the respondent to provide necessary records to the petitioner and conduct a fresh assessment independently, adhering to the mentioned principles. The court emphasized a timely reassessment within two months for a fair resolution. The writ petition was disposed of without costs to either party, ensuring compliance with the law and fair assessment practices.

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Issues:
Infraction of Narasus and Madras granite principles in assessment order.

Analysis:
The judgment pertains to a writ petition involving the infraction of Narasus and Madras granite principles in an assessment order under the Tamil Nadu Value Added Tax Act, 2006. The petitioner, an authorized distributor of wet and dry X-Ray films, challenged an assessment made by the enforcement wing of the respondent Department under Section 27 of the TNVAT Act, claiming it to be an assessment of escaped turnover. The petitioner contended that the assessment did not adhere to the Narasus principle, which requires the Assessing Authority to independently make an assessment rather than solely relying on the Enforcement Wing's report. The court noted that the matter revolved around a narrow compass and referred to previous judgments in Ponny Stores and Gayathri Agency cases, which were directly applicable and had not been appealed further.

The court, considering the precedents and the principles of Narasus and Madras granite, set aside the impugned assessment order solely on the ground of infraction of these principles. The order directed the respondent to furnish photocopies of the D-7 records to the petitioner and instructed the respondent to conduct a fresh assessment independent of the Enforcement Wing's proposals in accordance with the Narasus and Madras granite principles. The court emphasized that the fresh assessment should be made on its own merits and in compliance with the law. The timeline for completing the reassessment was set within two months from the specified date, ensuring expeditious resolution while allowing sufficient time for due diligence. The writ petition was disposed of accordingly, and the associated miscellaneous petition was closed, with no costs imposed on either party.

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