2011 (11) TMI 609 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to reassessment under section 25 of the Kerala Value Added Tax Act based on lack of personal hearing granted to the respondent.

Summary:
The High Court of Kerala heard a writ appeal filed by the State challenging a judgment that declared a reassessment completed under section 25 of the Kerala Value Added Tax Act as invalid due to the absence of a personal hearing granted to the respondent. The Court noted that section 25 mandates that escaped turnover can be assessed to tax only after providing a reasonable opportunity to the dealer to raise objections. The assessing officer had issued a notice to the respondent, giving an opportunity to file a written reply and specifically stating that a hearing would be conducted on the date of filing objections. The respondent, in their reply, did not request a personal hearing but instead urged the officer to consider the points raised and complete the assessments as per the maintained accounts. The Court emphasized that the decision to request a personal hearing lies with the dealer, and in this case, the respondent did not opt for it despite the opportunity provided. The Court found no justification for the single judge to interfere with the assessment order on the grounds of natural justice violation, stating that the respondent's remedy against the assessment is to file an appeal before the appellate authority. The Court upheld the requirement of a personal hearing if desired by the party but concluded that the respondent had waived this right, even though it was granted by the officer. Consequently, the writ appeal was allowed, vacating the judgment of the single judge and restoring the reassessment. However, the respondent was granted two weeks to file an appeal against the reassessment due to the interference by the single judge.