2001 (3) TMI 979 - HC - VAT and Sales Tax

Summary

Issues:
1. Non-furnishing of intelligence report to petitioners.
2. Allegation of improper procedure during the hearing.

Analysis:

1. The Court acknowledged the two-fold reasons presented by the petitioners, emphasizing the necessity for the petitioners to have access to the intelligence reports containing adverse material. The Court highlighted that the rules of natural justice mandate that all material relied upon by the department should be shared with the affected party. Despite not delving into the actual prejudice caused, the Court directed that a copy of the report in question be provided to the petitioners before rehearing the arguments. The Court justified this decision by asserting the petitioners' entitlement to a fair procedure, regardless of the merits of their case.

2. The petitioners raised concerns regarding a hearing that took place without their knowledge, alleging an improper and incorrect procedure. The Court underscored the fundamental principles governing judicial proceedings, emphasizing that cases should not be listed for hearing without notifying the opposite party. The Court condemned alterations in the order sheet and emphasized the impermissibility of one-sided or ex parte hearings. The Court stressed that such actions create an apprehension of unfairness and bias, which can vitiate the final order. Consequently, the Court set aside the impugned order, directing the Tribunal to provide the petitioners with the intelligence report, grant them sufficient time to address it, and conduct a fresh hearing with notice to the petitioners to ensure strict compliance with legal procedures.

This comprehensive analysis of the judgment highlights the Court's meticulous consideration of the issues raised by the petitioners and its commitment to upholding principles of natural justice and fair procedure in the legal process.