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2016 (9) TMI 772 - HC - VAT and Sales TaxValidity of order of assessment - Tamil Nadu Value Added Tax Act 2006 - Central Sales Tax Act, 1956 – entitlement of input tax credit - purchase of yarn from local registered dealer – carrying of dyeing process in their factory – local sales - certain quantity of Yarn sent to factory in Kerala to carry on dyeing process and is again brought back to Tamil Nadu for sale – inspection by Enforcement Wing Officials – pre-assessment notice – sought time to file objections – principles of natural justice – Held that: - The need for affording an opportunity of personal hearing was emphasized by the Court in the case of SRC Projects Pvt Ltd., Vs. The Commissioner of Commercial Taxes and another [2008 (9) TMI 914 - MADRAS HIGH COURT]. The impugned Assessment Orders have been passed solely based upon the report submitted by the Enforcement Wing Officials. It is settled legal position that the Assessing Officer, is an independent authority under the Act and he is bound to complete the assessment, taking into consideration the objections raised by the dealer. Therefore, the respondent would not be justified in merely adopting the report as such. However, the respondent cannot be fully faulted because the petitioner did not submit their objections in spite of sufficient time being granted. The respondent shall afford an opportunity of personal hearing to the petitioner and independently complete the assessment and not solely be guided by the report of the Enforcement Wing Officials. The petitioner had already paid 25% of the disputed tax for all the Assessment Years, no further coercive action shall be initiated against the petitioner till fresh orders are passed – petition allowed – decided in favor of petitioner.
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