System Generated Assessment Orders Not Valid – Delhi HC

In a major relief to VAT dealers in the State of Delhi, the High Court of Delhi has quashed the system generated assessment orders issued by the VATO.

The High Court also quashed the circular Dt.29.07.2015 containing instructions for issue of system generated orders.

The High Court deprecated the circulars and orders issued by the department.

The Order of the High Court is a boon to the VAT dealers, who are grappled with system generated assessment orders, without any application of mind, thereby violating the principles of natural justice.

All the trade and industry are requested to note the judgement. The judgement will be helpful to dealers in other States also, where the department is resorting to system generated audits/orders, without application of mind. Dealers in other States also can approach the jurisdiction High Courts in case of demands raised in their States through system generated orders.