2012 (7) TMI 867 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to assessment order on grounds of natural justice violation.

Summary:
The appellant, the proprietor of a closed industrial unit, challenged the assessment order issued by the first respondent in violation of natural justice. The appellant's counsel pointed out discrepancies in the tax amount credited and paid, urging the assessing officer to verify and credit the actual amount paid. The court noted the lack of proper communication with the appellant regarding pre-assessment notices due to the closed business address. The court allowed the writ appeal, directing the appellant to produce the judgment before the assessing officer for re-assessment. The assessment should be completed afresh within two months, with a stay on recovery based on the previous order. The appellant must cooperate in the process, or recovery can proceed based on the previous order. The court emphasized the need for better communication between the Department and taxpayers to avoid such issues in the future. A direction was given to the Commissioner of Commercial Tax to maintain current contact details of all taxpayers for effective communication and coordination among departmental officers.

The judgment highlights the importance of ensuring proper communication and adherence to natural justice principles in assessment proceedings to prevent unnecessary litigation and delays.