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2022 (11) TMI 93 - HC - VAT and Sales TaxValidity of assessment order - Taxability - fly ash procured from the Tamil Nadu Electricity Board (TNEB) - exemption claimed in respect of supplies to be made to Special Economic Zones (SEZ) - ban imposed by the Central Government in transacting in fly ash, for preservation and protection of the environment by way of Notification dated 14.09.1999 - HELD THAT:- The impugned proceedings were triggered by an audit slip wherein there was reference to Section 18 of the Act. The petitioner has specifically disavowed all reference to Section 18 stating that the claim of exemption is not under Section 18 but only under the Government Order as aforesaid. Despite the multiple rounds of prior litigation in this matter, in the present impugned notices as well, the assessing authority merely repeats the same proposals contained in the audit note - The officer proposes, in the impugned notice, to assess the value of the material taking the price at which other suppliers have effected the sale, as a base. While he initially states that the actual turnover must be brought to tax, he goes on to state that the value of fly ash at which other suppliers have supplied the goods to the cement industry will be adopted as the basis of assessment, notwithstanding that the petitioner has set out the actual value at which the fly ash has been procured duly supported by a certificate from the chartered accountant. Supply to developers of SEZ - HELD THAT:- The officer again reiterates that the ingredients of Section 18 of the Act have not been satisfied. Despite the settled position that an assessment should proceed on an independent application of mind by the officer, though naturally, he would take note of the objections raised by audit, and inspite of the submissions of the petitioner that no claim has been made in terms of Section 18, the authority repeatedly refers to Section 18. In light of the reiteration of the same errors by the assessing authority to which learned Government Pleader will accede, the impugned notice shall not be pursued. Let a fresh notice be issued and if and when such notices are issued, responses will be filed by the assessee and assessments be completed expeditiously - the respondent is permitted to issue notices within four (4) weeks from today, bearing note of the flaws pointed out above. If no notice is issued within the aforesaid time frame, the returns of the petitioner for the periods in question will be deemed to have been accepted. Petition disposed off.
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