2015 (6) TMI 1102 - HC - VAT and Sales Tax

Restoration of petition - Natural justice - opportunity of personal hearing u/s 22(4) of the TNVAT Act? - Held that - on the limited score that the impugned orders have been passed in utter violation of Section 22(4) of the TNVAT Act which contemplates an opportunity of personal hearing to the petitioners this Court without going into the merits of the matter setting aside the impugned orders remand the cases back to the file of the respondent for fresh consideration on merits and in accordance with law after giving an opportunity of personal hearing to the petitioners - petition allowed.

Summary

Issues: Violation of Section 22(4) of the TN VAT Act - Lack of personal hearing provided to petitioners in impugned orders.

Analysis:
1. The judgment involves two writ petitions challenging orders in TIN Nos. 33811380344/2013-14 and 33851387112/2013-14 dated 10.04.2015 by the Assistant Commissioner (CT), Ayyappanthangal Assessment Circle. The petitioners argued that no personal hearing, as required under Section 22(4) of the TN VAT Act, was provided to them.

2. The counsel for the petitioners highlighted that written requests were submitted on 27.02.2015 and 06.04.2015, specifically asking for a personal hearing if the Commercial Tax Officer was not satisfied with their reply. The petitioners also contended that the sales suppression calculations did not consider the sales reported and tax paid, which were not properly addressed by the respondent.

3. The Additional Government Pleader for the respondent acknowledged the written requests for personal hearing made by the petitioners but was unable to confirm whether the petitioners were granted the opportunity of a personal hearing as mandated by Section 22(4) of the TN VAT Act.

4. The Court found that the impugned orders were passed in violation of Section 22(4) of the TN VAT Act, which requires providing an opportunity for a personal hearing to the petitioners. Without delving into the merits of the case, the Court set aside the impugned orders and remanded the cases to the respondent for fresh consideration, emphasizing the need for a personal hearing as per the law.

5. Consequently, both writ petitions were allowed, the impugned orders in TIN Nos. 33811380344/2013-14 and 33851387112/2013-14 dated 10.04.2015 were annulled, and the connected Miscellaneous Petitions were closed. No costs were awarded in the judgment.