2010 (7) TMI 919 - HC - VAT and Sales Tax

Whether the assessing officer is bound to give any personal hearing before passing order? Held that - Where there is violation of principles of natural justice alternative remedy will not be a bar. As the right of an assessee is protected under the circular and following the above Division Bench judgment of this court the impugned order dated July 30 2007 is set aside and the matter is remitted back to the Deputy Commercial Tax Officer-3 Virudhunagar District the second respondent herein for fresh consideration in accordance with law. The second respondent is directed to provide an opportunity of personal hearing before passing a final order. The said exercise shall be completed within a period of two months from the date of receipt of a copy of this order

Summary

Issues:
1. Whether the assessing officer is bound to provide a personal hearing before passing an order.

Analysis:
The petitioner challenged the assessment order passed by the Deputy Commercial Tax Officer-3, Sivakasi, Virudhunagar, raising the issue of whether a personal hearing should be provided before finalizing the assessment. The petitioner, a registered dealer under the Tamil Nadu General Sales Tax Act, received notices and submitted a detailed reply requesting a personal hearing. However, the assessing officer issued a demand notice without granting the requested hearing, leading to the writ petition. The petitioner relied on a circular requiring personal hearing if requested by the assessee, as per a Division Bench judgment.

2. Applicability of circular regarding personal hearing and alternative remedy under the TNGST Act.

Analysis:
The circular issued by the Commissioner of Commercial Taxes, Chennai, emphasized providing a fair opportunity and a personal hearing if requested by the assessee before finalizing assessments. The Division Bench judgment highlighted the importance of affording a personal hearing before passing adverse orders. The court considered the circular's scope in the revision of assessments under the TNGST Act and emphasized the significance of natural justice principles. The court also addressed the contention that the writ petition was not maintainable due to the availability of an alternative remedy under the TNGST Act, citing exceptions where a writ petition can be entertained despite the existence of alternative remedies.

Final Judgment:
The court set aside the impugned order and remitted the matter back to the Deputy Commercial Tax Officer-3 for fresh consideration, directing the provision of a personal hearing before passing a final order. The court emphasized the importance of following natural justice principles and the circular's guidelines, ensuring that the assessee's rights are protected. The court disposed of the writ petition without costs and closed the connected miscellaneous petition.