Independent application of mind in VAT valuation notices required; repeated defects and Section 18 reliance led to fresh notice permission.

Repeated valuation objections and renewed reliance on Section 18 were found insufficient where the impugned notices reflected the same defects as earlier rounds, including adoption of other suppliers' prices and failure to independently assess the petitioner's exemption claim for supplies to a Special Economic Zone developer. The assessment process must show independent application of mind by the assessing authority, even when audit objections exist. In light of the conceded flaws, the notices were not sustained, and fresh notices were permitted to be issued within the stipulated time.

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Issues: Whether the impugned notices issued under the Tamil Nadu Value Added Tax Act, 2007 could be sustained despite repetition of the same valuation objections and repeated reference to Section 18, and whether fresh notices could be issued.

Analysis: The notices proceeded on the same defects noticed in earlier rounds, including adoption of other suppliers' prices for valuation and repeated invocation of Section 18 despite the petitioner's stand that exemption was claimed under the Government Order relating to supplies to Special Economic Zone developers. The assessment process must reflect independent application of mind by the assessing authority, even where audit objections are present. In view of the conceded flaws, the impugned notice was not to be pursued and liberty was reserved to issue fresh notices within a stipulated time.

Conclusion: The impugned notices were not sustained, and the respondent was permitted to issue fresh notices. The petitioner obtained partial relief.

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