2011 (11) TMI 610 - HC - VAT and Sales Tax

Summary

Issues:
Challenging reassessment orders for periods 1999-2000 and 2000-01, non-compliance with court directions, lack of opportunity before passing assessment orders.

Analysis:
The petitioner challenged earlier assessment orders, and the court directed the respondent to provide copies of documents and afford an opportunity to challenge them before passing fresh assessment orders. The petitioner alleged non-compliance with court directions as no documents were furnished, and no opportunity was given before passing the impugned assessment orders. The respondent argued that the petitioner did not respond to summons for perusing documents and that certain documents were seized by the CBI. The court reviewed the orders passed earlier and noted the specific directions given to the respondent to provide copies of documents and afford an opportunity to challenge them. However, the respondent failed to comply with these directions before passing the impugned orders, violating principles of natural justice by not providing any opportunity to the petitioner.

The court found that the impugned assessment orders were passed in violation of its directions and principles of natural justice. Consequently, the court allowed the writ petitions, setting aside the reassessment orders for the periods in question. The respondent was directed to conduct a fresh inquiry, providing the petitioner with copies of documents to be relied upon. If the documents were not available, the respondent could obtain them from the investigating agency and furnish copies to the petitioner. The court mandated completion of this process within twelve weeks and instructed the respondent to inform the petitioner if the documents were unavailable. No costs were awarded, and the connected motions in both petitions were closed.