2008 (3) TMI 651 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to Tribunal's order enhancing assessment without issuing notice under rule 50(3) of OST Rules.

The High Court heard the counsel for the parties regarding a writ petition challenging the Tribunal's order dated May 4, 2007, which enhanced the assessment without issuing any notice under rule 50(3) of the OST Rules. The Court noted that the Tribunal's order lacked observance of the basic principle of natural justice and the mandatory provision of the rule. Consequently, the Court set aside the Tribunal's order, remanding the matter back to the Tribunal for fresh consideration in accordance with the law. The Tribunal was directed to hear and dispose of the appeal promptly, preferably within three months from the date of the Court's order. The writ petition was disposed of, along with Misc. Case No. 155 of 2007, and the records were returned to the counsel for the Revenue.

This judgment highlights the importance of adhering to the principles of natural justice and the mandatory provisions of rules in enhancing assessments, emphasizing the need for proper notice to be given to the assessee before making any such enhancements.