2009 (8) TMI 1220 - HC - VAT and Sales Tax

Summary

Issues involved:
The issues involved in this case are the legality of the orders passed by respondent no.2 under section 21(2) of the Act for reassessment for the assessment year 2005-06, the lack of opportunity of being heard before passing the impugned orders, and the violation of principles of natural justice.

Details of the Judgment:

Issue 1: Legality of Orders Passed by Respondent No.2 under Section 21(2) of the Act for Reassessment:
The petitioner, a private limited company engaged in manufacturing and selling oil and organic manure, challenged the impugned orders dated 25-4-2009 and notices dated 28-4-2009 issued by respondent no.2 and respondent no.3 under section 21(2) of the Act for reassessment of the assessment year 2005-06. The petitioner contended that the orders were passed without affording a reasonable opportunity of being heard.

Issue 2: Lack of Opportunity of Being Heard Before Passing Impugned Orders:
The petitioner argued that the impugned order granting permission for reassessment was passed without providing an adequate opportunity to present their case. The notice fixing the appearance date on 25-4-2009 was served on the evening of 24-4-2009, leaving insufficient time for the petitioner to respond. The Court criticized the haste with which the orders were passed, emphasizing the importance of fairness and natural justice in administrative proceedings.

Issue 3: Violation of Principles of Natural Justice:
The Court referred to a previous judgment emphasizing the necessity of affording a hearing to the assessee before granting permission for reassessment. It was held that the failure to provide reasons for granting permission rendered the impugned order unsustainable. The Court quashed the impugned orders dated 25-4-2009 and directed respondent no.2 to pass a fresh order after affording the petitioner an opportunity to be heard.

In conclusion, the writ petition was allowed, and the impugned orders were quashed, with directions for a fresh order to be passed by respondent no.2 within three months after providing proper notice to the petitioner.