2008 (6) TMI 553 - HC - VAT and Sales Tax

Summary

Issues:
1. Challenge to a show-cause notice for sales tax imposition with penalty under the Tamil Nadu General Sales Tax Act, 1959.
2. Allegation of failure to consider objections raised by the petitioner.
3. Question of appealability of the order under challenge.
4. Violation of principles of natural justice in passing the impugned order.

Analysis:

1. The respondent issued a show-cause notice to the petitioner for imposing sales tax and penalty. The petitioner submitted objections on August 22, 2005, but the respondent confirmed the proposal and passed an order on November 30, 2005, determining tax and penalty amounts. The order was challenged in the writ petition.

2. The petitioner contended that the respondent did not consider the objections raised, despite the petitioner's timely submission. The court noted that the respondent tacitly admitted receiving the reply on August 22, 2005, making the order erroneous.

3. The respondent argued that the order was appealable, and the petitioner should pursue that remedy instead of filing a writ petition. However, the petitioner relied on a judgment emphasizing the need for providing copies of documents relied upon and granting the dealer an opportunity to challenge them before passing such orders.

4. The petitioner's reply to the notice requested copies of bills to challenge the basis of the proposed conclusion. The requested copies were not provided, leading to a violation of the principles of natural justice. As a result, the court set aside the impugned order and remitted the matter back to the respondent for fresh disposal in accordance with the law, directing the respondent to provide copies of relied-upon documents and allow the petitioner to submit objections.

In conclusion, the writ petition was allowed, the impugned order was set aside, and the matter was remitted back for fresh disposal, emphasizing adherence to the principles of natural justice.