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2018 (10) TMI 1455 - HC - VAT and Sales TaxValidity of assessment order - time limitation - it is also alleged that the first respondent failed to appreciate the specific stand raised by the petitioner that the business was sold as a whole and there was no sale of plant and machinery - TNGST Act. Held that:- The respondent, though has referred to the Memorandum of Understanding in the impugned Assessment Order, has failed to render any finding as to the effect of transaction, which has been recorded in the Memorandum of Understanding. The respondent was duty bound to record whether the transaction was akin to a slump sale or a sale of plant and machinery - Without rendering such a finding and without passing a speaking order, the respondent could not have brushed aside the Memorandum of Understanding dated 10.03.2006. Apart from this, when the sworn statement was recorded, the petitioner has elaborately stated about the nature of transaction. This aspect has also been ignored by the second respondent. Time Limitation - Held that:- The respondents in the counter affidavit would state that the Registration Certificate of the petitioner was cancelled on 31.03.2005. The effect of such cancellation on the petitioner's business has to be considered. While considering the said issue, the point pertaining to limitation for reopening the assessment is also required to be considered. Since the effect of the Memorandum of Understanding has not been considered by the respondent and not even a finding has been recorded by the respondent in the impugned Assessment Order, the assessment has to be necessarily redone. The matter is remanded to the first respondent for fresh consideration - petition allowed by way of remand.
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