2005 (2) TMI 794 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to best judgment assessments under section 17(6) of the Assam General Sales Tax Act, 1993 without providing an opportunity of hearing to the affected party.

Analysis:
The judgment delivered by Justice Ranjan Gogoi pertains to five separate assessment orders dated November 11, 2000, for the assessment years 1993-94 to 1997-98, which were challenged in a writ petition. These assessments were conducted as best judgment assessments under the provisions of section 17(6) of the Assam General Sales Tax Act, 1993.

During the hearing, the petitioner's counsel argued that the assessing authority completed the best judgment assessments without granting the petitioner an opportunity to be heard. It was highlighted that the petitioner had received a notice for joint verification of accounts seized by the Bureau of Economic Offence, but no further opportunity was provided before the assessments were finalized. The petitioner contended that as per section 17(6) and rule 25, any best judgment assessment must be preceded by a proper hearing to the affected party. The petitioner emphasized that no formal notice or opportunity to present their case was given, as required by law.

Justice Ranjan Gogoi, in the judgment, emphasized the importance of providing the assessee with a fair opportunity to be heard before conducting best judgment assessments under section 17(6) of the Act. Since the assessing authority failed to afford the petitioner this fundamental right, the Court held that each of the impugned assessment orders was legally flawed. Consequently, the Court set aside all the challenged orders, allowing the concerned authority to conduct fresh assessments following due process and in compliance with the law.

In conclusion, the writ petition was allowed by the High Court, with directions issued for the concerned authority to complete the assessments in accordance with the prescribed legal procedures, ensuring that the petitioner is granted a proper opportunity to present their case before any further assessments are finalized.