2001 (1) TMI 932 - HC - VAT and Sales Tax

Summary

Issues Involved:
Appeal against reassessment order under Rajasthan Sales Tax Act, 1954 for the assessment period 1994-95. Dismissal of petitions challenging reassessment orders on the ground of availability of alternative remedy. Breach of natural justice due to lack of opportunity of hearing before reassessment order. Validity of serving notice under section 12 before reassessment proceedings.

Analysis:
The judgment pertains to an appeal related to a reassessment order issued by the assessing authority under the Rajasthan Sales Tax Act, 1954 for the assessment period 1994-95. The original challenge to the reassessment order was made through an Original Application before the Rajasthan Taxation Tribunal, which was later transferred to the High Court due to the abolition of the Tribunal. The petitioner filed separate writ petitions challenging the reassessment orders for different assessment years independently.

The single Judge had dismissed all the petitions citing the availability of an alternative remedy as a ground. However, the petitioner argued that the reassessment order was made on the same date the notice for reassessment was served, denying them an adequate opportunity of hearing. The petitioner contended that the principle of natural justice was breached in this case.

The High Court, in its analysis, agreed that the impugned orders were indeed made in breach of natural justice. It highlighted that the availability of an alternative remedy should not be a reason to dismiss a petition invoking the extraordinary jurisdiction of the Court under articles 226 and 227 of the Constitution of India. The Court referred to established legal principles and emphasized the importance of providing an adequate opportunity of hearing to the assessee before making an assessment order.

The Court concluded that the petitioner was entitled to be heard before any order adversely affecting their rights was passed. Therefore, the appeal and the writ petition were allowed, and the order passed on December 31, 1998, was set aside. The assessing officer was directed to complete the proceedings under section 12 in accordance with the law and to make a fresh reassessment order after giving adequate opportunity of hearing to the petitioner, including a personal hearing. No costs were awarded in this matter.