High Court sets aside Assessment Order under Tamil Nadu VAT Act for 2011-12 to 2015-16, grants appellant final opportunity for reconciliation.

The High Court allowed the Writ Appeals, setting aside the order passed in the writ petitions challenging the Assessment Order under the Tamil Nadu Value Added Tax Act for the Assessment Years 2011-12 to 2015-16. The Court granted the appellant a final opportunity to reconcile the slips with the ledger, emphasizing cooperation with the assessment process to avoid dismissal of the appeals. The matter was remanded to the respondent for fresh consideration, with the Court highlighting the importance of leaving open the option for the appellant to avail the alternate remedy under the Act.

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Issues involved:
Challenging Assessment Order under Tamil Nadu Value Added Tax Act, 2006 for Assessment Years 2011-12 to 2015-16; Violation of principles of natural justice in assessment process; Reconciliation of errors pointed out by the Department; Granting additional opportunity to the appellant for reconciliation; Dismissal of writ petitions without liberty to file an appeal.

Detailed Analysis:

1. Challenging Assessment Order:
The writ petitions were filed challenging the Assessment Order under the Tamil Nadu Value Added Tax Act for the Assessment Years 2011-12 to 2015-16. The appellant was alleged to have suppressed turnover, leading to a revision of assessment based on an inspection conducted at the appellant's business premises.

2. Violation of Principles of Natural Justice:
Initially, the Court found a violation of principles of natural justice as the show cause notice was not received on time. The Court directed the appellant to treat the impugned orders as show cause notices, provide necessary documents, submit objections, and afforded an opportunity for a personal hearing before redoing the assessments.

3. Reconciliation Process:
The appellant sought time for reconciliation as the assessment related to six years, and verifying the voluminous recovery slips with the Books of Accounts was a cumbersome process. The appellant highlighted discrepancies in the Enforcement Wing Officers' assessment process, emphasizing the need for a detailed scrutiny of slips with reference to their books of accounts.

4. Granting Additional Opportunity:
The Court granted one more opportunity to the appellant to reconcile the slips with the ledger. The Assessing Officer was directed to fix a date for a personal hearing during the second week of November 2021. The appellant was instructed to cooperate with the assessment proceedings, failing which the benefit of the order would be revoked, and the Writ Appeals would be dismissed automatically.

5. Dismissal of Writ Petitions:
The writ petitions were dismissed without granting liberty to file an appeal. However, the Court emphasized the importance of leaving open the option for the appellant to avail the alternate remedy under the Act instead of foreclosing the issue entirely.

In conclusion, the High Court allowed the Writ Appeals, set aside the order passed in the writ petitions, and remanded the matter to the respondent for fresh consideration. The appellant was given a final opportunity to reconcile the slips with the ledger, with clear instructions to cooperate with the assessment process to avoid dismissal of the appeals.

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