2014 (2) TMI 1090 - HC - VAT and Sales Tax

Cancelling the registration of the appellant under the Gujarat Value Added Tax, 2002 - Non consideration of documents - Held that - appellant had produced the paper book containing several documents one of them being return submitted on 8th June 2012. The said document contains the counter signature of its having received on 8th June 2012. We have no reason to discard such document. Under the circumstances, it cannot be stated that there was no representation on the part of the appellant on various dates fixed by the Deputy Commissioner of Commercial Tax for hearing. Atleast, the return submissions could have been taken into account which apparently was lost sight of. Under the circumstances, the order dated 16th August 2012 is set-aside. Resultantly, subsequent order of the Tribunal confirming such order is also rendered ineffective. The issue is placed back before the Deputy Commissioner of Commercial Tax, Bhavnagar for fresh hearing and disposal in accordance with law - Decided in favour of Assessee.

Summary

Issues:
Challenge to order cancelling registration under the Gujarat Value Added Tax Act, 2002. Requirement of fair hearing.

Analysis:
The High Court heard the appeal on the limited question of the requirement of fair hearing. The appellant challenged an order canceling their registration under the Gujarat Value Added Tax Act, 2002. The appellant also contested the order passed by the Gujarat Value Added Tax Tribunal. The main grievance raised was that despite submitting material and detailed submissions, the impugned order was passed without considering these materials. The appellant's counsel argued that the registration was canceled without addressing the objections raised. The Court noted that the authority passed an ex parte order based on material already on record, as the dealer or their representative did not remain present despite adjournments. The appeal was dismissed by the Tribunal without addressing this issue raised by the appellant.

The appellant's counsel presented a paper book with various documents, including a return submitted on 8th June 2012, which was counter-signed upon receipt. The Court found no reason to disregard this document and concluded that there was representation on behalf of the appellant on the dates fixed for hearings. The Court held that the return submissions should have been considered, which was overlooked. Consequently, the order dated 16th August 2012 was set aside, making the subsequent Tribunal order confirming it ineffective. The matter was remanded back to the Deputy Commissioner of Commercial Tax for fresh hearing and disposal in accordance with the law. The appellant was directed to appear before the authority on a specified date, without the need for a separate notice, for further proceedings.

In conclusion, the appeal was disposed of accordingly, with the Court emphasizing the importance of fair hearings and proper consideration of submissions in administrative proceedings under the VAT Act.