2011 (6) TMI 709 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to assessment order u/s 25 of the Kerala Value Added Tax Act, 2003 & violation of principles of natural justice.

Summary:
The petitioner challenged the assessment order finalized for the year 2009-10, following a series of assessment orders and appeals. The Appellate Tribunal set aside the assessments and remanded the matter for fresh consideration by the assessing authority, directing specific opportunities for the petitioner to file objections. Despite the petitioner submitting detailed objections, the assessing authority finalized the assessment without affording a personal hearing or considering the objections properly.

The petitioner contended that the assessment order violated the mandatory procedure u/s 25 of the KVAT Act and principles of natural justice, citing a relevant court decision. The assessing authority argued that the petitioner was given sufficient opportunity for a personal hearing through a notice.

The court noted that the notice provided did not specify a date for a personal hearing, emphasizing that such an opportunity is not an empty formality but a crucial step before discarding objections raised by the assessee. Therefore, the court held that the assessment order was not sustainable in law and quashed it. The assessing authority was directed to finalize the matter afresh, providing a reasonable opportunity for a personal hearing and to produce supporting documents within one month from the date of the judgment.