Concessional tax rate on Aviation Turbine Fuel requires proper fact-finding and a speaking order before denial.

Dispute concerned the concessional 4% tax rate claimed on Aviation Turbine Fuel under the Tamil Nadu Value Added Tax Act, 2006, and whether the Assessing Officer properly examined the supporting materials and statutory conditions before denying the concession. The assessment was criticised for inadequate fact-finding, insufficient reasoning, and failure to address the petitioner's documents or compute the differential tax clearly. The section 84 rectification order was also challenged on the same basis. The matter was remitted with a direction for a fresh personal hearing and a speaking order on the correct tax rate applicable to ATF.

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Issues: Whether the order passed under Section 84 of the Tamil Nadu Value Added Tax Act, 2006 could sustain the disallowance of concessional rate of tax on Aviation Turbine Fuel without a proper examination of the conditions under Section 14 of the Central Sales Tax Act, 1956 and without a speaking determination on the issue.

Analysis: The assessment and the rectification proceedings did not contain a comprehensive adjudication on whether the sales of Aviation Turbine Fuel satisfied the conditions for concessional treatment. The original assessment referred to the statutory conditions and expressed doubt about compliance, but did not carry out a proper fact-finding exercise or record a clear determination on the rate of tax. The rectification order merely proceeded to correct the computation and uphold the rejection of concession without independent discussion. The issue therefore required fresh consideration on merits after hearing the petitioner and examining the supporting materials.

Conclusion: The rectification order and the assessment, insofar as they concerned denial of concessional rate on Aviation Turbine Fuel, were set aside and the matter was remitted for fresh adjudication after hearing the petitioner.

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