2011 (6) TMI 696 - HC - VAT and Sales Tax

Summary

Issues: Challenge against exhibit P7 order of assessment based on violation of mandatory procedure and principles of natural justice.

Analysis:
The writ petition challenges the exhibit P7 order of assessment finalized under rule 6(5) of the CST Rules, alleging violation of mandatory procedure and principles of natural justice. The petitioner claims that the notice calling for objections against the assessment proposed was served late, and despite a request for an extension of time due to illness, the assessment was finalized abruptly. The respondent argues that the request for adjournment was denied due to time constraints as the assessment was getting time-barred. The court notes that no proper opportunity was given to the petitioner to raise objections or produce accounts, and the assessment was finalized hastily without notifying the rejection of the adjournment request.

The court emphasizes that assessment proceedings are quasi-judicial and authorities must adhere to principles of natural justice. It finds the impugned order unsustainable due to the lack of proper opportunity granted to the petitioner. Consequently, the court allows the writ petition, quashes the exhibit P7 order, and directs the first respondent to conduct the assessment afresh, providing a reasonable opportunity to the petitioner. The petitioner is instructed to file objections within two weeks of receiving the judgment, and the assessment is to be finalized after a personal hearing within one month of receiving objections. The petitioner is also required to provide a copy of the judgment to the first respondent for necessary action.