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2013 (5) TMI 340 - HC - VAT and Sales TaxKVAT Act - notice of demand - adjournment of the hearing seeked by assessee but no response received on the other hand order passed assessing the tax due - Held that - Considering the fact that the Chairman of the Company expired on 16/9/2012 and his funeral was on 18/9/2012 and the hearing that was scheduled was on 19/9/2012. In such circumstances, even if the petitioner has not appeared for personal hearing, such a failure on the part of the petitioner cannot be taken as a willful one. Thus fairness requires that the matter should be reconsidered with an opportunity to the petitioner to file their objections within two weeks from today to Ext.P2 notice and also with an opportunity of hearing.
Issues:
1. Violation of principles of natural justice due to completion of assessment without granting adjournment request following the death of the Company's Chairman. Analysis: The petitioner, a Company engaged in export activities, was issued a notice under Section 24 of the KVAT Act for a hearing scheduled on 19/9/2012. However, the Chairman of the Company passed away on 16/9/2012, and the funeral was set for 18/9/2012. The petitioner submitted a request for an adjournment of the hearing on 18/9/2012, but received no response. Subsequently, an assessment order was passed on 29/9/2012, along with a notice of demand amounting to Rs.1,98,14,079/-. The petitioner challenged the assessment order and notice of demand through a writ petition, alleging a violation of natural justice due to the completion of assessment without considering the circumstances of the Chairman's death. The petitioner contended that the failure to appear for the hearing following the Chairman's death was not willful, and fairness required reconsideration of the matter with an opportunity for the petitioner to present their objections and have a hearing. The Government Pleader representing the 3rd respondent stated that they did not receive the request for adjournment (Ext.P4) or any other communication regarding the Chairman's death. However, the Court acknowledged the circumstances of the Chairman's death and funeral, emphasizing that the failure to attend the hearing was not intentional. Therefore, the Court quashed the assessment order and notice of demand, directing the petitioner to file objections to the original notice within two weeks. The Assessing Officer was instructed to hear the petitioner and make a decision based on the objections filed. In conclusion, the Court disposed of the writ petition by emphasizing the importance of considering the circumstances surrounding the Chairman's death and funeral in the assessment process. The Court's decision aimed to uphold the principles of natural justice by providing the petitioner with an opportunity to present their case and objections before a fair assessment could be made. The petitioner was required to submit a copy of the judgment and the writ petition to the 3rd respondent for compliance with the Court's directives.
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