2008 (3) TMI 675 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to re-assessment order u/s 12-A of Karnataka Sales Tax Act, 1957 and consequential demand notice for assessment year 2004-05 due to incorrect notice issued to non-existent entity.

Summary:

Issue 1: Incorrect Notice Issued to Non-Existent Entity
The petitioner, a private limited company, challenged the re-assessment order u/s 12-A of the Karnataka Sales Tax Act, 1957 and the consequential demand notice for the assessment year 2004-05. The petitioner contended that the assessing authority wrongly issued notice to M/s IBM India Limited, a non-existent entity, instead of the actual dealer, despite being informed of the name change through necessary applications and objections. The petitioner requested a personal hearing through counsel, which was not considered, leading to the unilateral order and demand notice. The High Court observed that the assessing authority did not conduct a proper inquiry or afford a reasonable opportunity of hearing to the petitioner, rendering the impugned order unsustainable. Consequently, the court set aside the order and remitted the matter back to the competent authority for reconsideration and appropriate decision within three months, directing the issuance of a fresh notice and submission of objections by the petitioner within specified timelines.

Conclusion:
The High Court allowed the writ petition in part, setting aside the impugned order and demand notice, and directed the competent authority to re-examine the matter after affording the petitioner a proper opportunity of hearing.