2014 (6) TMI 873 - HC - VAT and Sales Tax

Validity of assessment order - objections as well as the documents submitted by assessee were not considered in a proper perspective - without giving an opportunity of personal hearing to the petitioners, straightaway the impugned orders were passed, without assigning reasons - Held that - A cursory reading of the impugned orders will denote that the respondents have straightaway passed a non-speaking orders even without taking into consideration the relevant documents submitted by the petitioner along with the objections in a proper perspective and the respondents have not passed a speaking orders - Following decision of Steel Authority of India Limited vs. Sales Tax Officer, Rourkela-I Circle 2008 (7) TMI 551 - SUPREME COURT OF INDIA - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Challenging impugned orders for assessment years 2010-11, 2011-12, and 2012-13 on grounds of non-consideration of objections and violation of principles of natural justice.

Analysis:
The petitioners challenged the impugned orders for assessment years 2010-11, 2011-12, and 2012-13, alleging that their objections were not considered by the respondents. The petitioners contended that the authorities passed non-speaking orders without giving them a personal hearing or providing reasons for rejection, violating principles of natural justice. The counsel for the petitioners cited a Supreme Court judgment emphasizing the need for authorities to provide reasons in their orders to inform the assessee of the grounds for rejection. The Additional Government Pleader for the respondents acknowledged that while the objections were noted, the materials submitted were not considered. He suggested remitting the matters back to the respondents for a fresh decision after affording the petitioners a personal hearing.

Upon reviewing the submissions, the court noted that the impugned orders were non-speaking, indicating a lack of consideration for the documents submitted by the petitioners and their objections. Citing a Supreme Court judgment, the court emphasized the importance of providing reasons in orders to ensure clarity and fairness in decision-making processes. In line with a previous decision, the court allowed the writ petitions and set aside the impugned orders. The matters were remitted back to the respondents with directions to independently consider the documents and objections, provide a personal hearing to the petitioners, and pass speaking orders on merits and in accordance with the law promptly.

This detailed analysis showcases the court's consideration of the petitioners' grievances regarding the non-consideration of objections and the violation of natural justice principles in the impugned orders for assessment years 2010-11, 2011-12, and 2012-13. The court's reliance on legal precedents and the subsequent decision to set aside the orders and remit the matters back for a fresh decision highlights the importance of procedural fairness and the requirement for authorities to provide reasoned decisions in such cases.