2013 (10) TMI 639 - HC - VAT and Sales Tax

Violation of principle of natural justice - Ex parte assessment order - Held that - Court directed Assessing Officers that, the record shall be maintained up to date and when the dealer or his authorised representative appears before the Assessing Authority or any other Appellate Authority, his signature shall be taken on the body of the order sheet on the date of his appearance - It appears that the aforesaid direction has not been carried out in the present case. Therefore, we hold that the impugned ex parte assessment order is passed without due notice to the petitioner or his representative in violation of the principles of natural justice as well as the circular dated 30.11.2009 and the judgment of this Court - Therefore impugned orders are quashed - Decided in favour of assessee.

Summary

Issues:
Challenge to ex parte assessment order without proper notice to the assessee.

Analysis:
The petitioner challenged an ex parte assessment order dated 30th March, 2013, raising a demand of tax and penalty. The petitioner contended that despite appearing before the Assessing Officer on 16.2.2013 with books of accounts, an ex parte order was passed without any notice for assessment. The assessment order showed discrepancies as the petitioner claimed to have represented with books of accounts on 16.2.2013, contradicting the assessment order's assertion that the assessee was represented without books of account. The petitioner's Senior Counsel argued that no signature was taken on the order sheet on 16.2.2013, indicating no effective hearing. The Revenue's Standing Counsel confirmed the absence of the representative's signature on the order sheet, highlighting the lack of notice to the assessee on subsequent dates.

The Court referred to a previous order in a similar case directing that the dealer's or representative's signature must be taken on the order sheet when appearing before the Assessing Authority. It was noted that this directive was not followed in the present case, leading to a violation of natural justice principles and the circular dated 30.11.2009. Consequently, the Court quashed the ex parte assessment order and directed the petitioner to appear before the Assessing Officer with books of account on a specified date for expeditious assessment proceedings. The Court clarified that it did not express any opinion on the case's merits or contentions raised by either party. A free copy of the order was to be provided to the Revenue's Standing Counsel, and an urgent certified copy would be issued upon application.