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2014 (10) TMI 923 - HC - VAT and Sales TaxEntertainment tax - penalty - natural justice - Held that - When the objection of petitioner was accepted and a letter was issued informing her that a fresh survey will be conducted on 25.11.2009, then passing a fresh order without conducting any such survey or without referring to order dated 23.11.2009, in my view, is patently illegal - petition allowed - decided in favor of petitioner.
Issues:
Challenge to order imposing entertainment tax and penalty under U.P. Entertainment and Betting Tax Act, 1997. Analysis: The writ petition challenged an order imposing entertainment tax and penalty on the petitioners under the U.P. Entertainment and Betting Tax Act, 1997. The District Magistrate had passed an order imposing the tax and penalty, which was upheld with a reduced penalty by the Commissioner on appeal. The petitioner contended that the survey conducted was ex parte, without notice, and thus unreliable. The Assistant Entertainment Tax Commissioner had agreed to conduct a fresh survey in response to the petitioner's objection. However, no such survey was conducted, and the impugned orders did not mention the fresh survey directive. The court noted this discrepancy and deemed the orders illegal for not considering the directive for a fresh survey. The court held that passing a fresh order without conducting the promised survey or acknowledging the directive was patently illegal. The court allowed the writ petition, quashing the impugned orders dated 16.1.2010 and 25.4.2013. However, the order did not prevent the competent authority from issuing a fresh order in compliance with the law and the court's observations. The judgment emphasized the importance of following due process and considering all relevant factors, such as conducting surveys as promised, before making decisions regarding tax imposition and penalties under the Act. The decision highlighted the necessity for authorities to adhere to procedural fairness and take into account all relevant information before issuing orders affecting parties' rights and liabilities under the law.
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