Pending rectification application bars coercive tax demand until the assessment is expressly decided on merits.

A statutory rectification application under Section 84 of the Tamil Nadu Value Added Tax Act must be expressly decided on merits by allowing or rejecting it before coercive recovery proceeds on the original assessment. Where the dealer's rectification request remained pending and had not been finally disposed of for all assessment years, enforcement of the demand based on the original assessment was impermissible. The Madras HC therefore found the demand unsustainable, set it aside, and remitted the matter for fresh consideration of the rectification application in accordance with law.

---

---

Issues: Whether a demand based on the original assessment could be sustained when the dealer's application for rectification under Section 84 of the Tamil Nadu Value Added Tax Act was still pending and had not been expressly decided.

Analysis: Section 84 permits a dealer to seek rectification of errors apparent on the face of the record within the prescribed period, and the authority is required to decide the application either by allowing the rectification or rejecting it on merits. The record showed that the rectification application dated 08.10.2018 had not been expressly disposed of for all assessment years, and the order passed on 04.02.2019 related only to one assessment year without any clear decision on the remaining years. In such circumstances, proceeding to enforce the demand on the basis of the original assessment, without first deciding the pending rectification request by a reasoned order, was held to be impermissible.

Conclusion: The demand dated 27.02.2019 was not sustainable and was set aside, and the matter was remitted for fresh consideration of the rectification application on merits.

Final Conclusion: The assessment demand could not stand while the rectification request remained undecided, and the authority was directed to pass a fresh order on the pending application in accordance with law.

Ratio Decidendi: Where a statutory rectification application against an assessment order remains pending without an express decision, coercive demand on the basis of the original assessment is unsustainable until the application is finally decided on merits.

---