2014 (9) TMI 593 - HC - VAT and Sales Tax

Challenge to an order of revision of assessment - Jurisdiction to pass revision order - Held that - On receipt of such reply on 28.05.2014, the respondent did not reject the request for personal hearing, but proceed to pass final order on 06.06.2014. In the impugned order, it is observed that already opportunity has been given. It is a settled legal position that when complicated facts are involved, where the documents have to be explained, though statue does not specifically provide for an opportunity of personal hearing, fairness in procedure and principle of natural justice would require the authority to offer an opportunity of personal hearing, more so in a case of revision of assessment and when specific request has been made. Therefore, on that ground alone, this Court is inclined to entertain the writ petition. However, on this ground, this Court is not inclined to set aside the order of revisioinal assessment. But, the matter shall stand remitted to the respondent so as to enable the respondent to afford an opportunity of personal hearing within a period of two weeks from the date of receipt of a copy of this order - Decided in favour of assessee.

Summary

Issues:
Challenge to the order of revision of assessment for the assessment year 2005-06 based on jurisdiction and lack of opportunity of personal hearing.

Jurisdiction Issue Analysis:
The petitioner contended that the authority had no jurisdiction to revise the assessment order as the registered office and branch office should not be treated as separate entities for tax purposes. Additionally, the petitioner argued that the export sale by the branch office should not be considered a sale to the registered office. The court noted that to decide jurisdiction, detailed examination of documents was necessary, which could not be done in a writ petition. The court rejected the first contention, stating that the appropriate remedy for the petitioner was to approach the Deputy Commissioner (Commercial Tax) in Virudhunagar.

Opportunity of Personal Hearing Issue Analysis:
The petitioner raised a second contention regarding the lack of an opportunity for a personal hearing. The dealer had requested a personal hearing after submitting interim objections, but the final order was passed without granting this request. The court emphasized the importance of fairness in procedure and principles of natural justice, especially in cases involving complex facts like revision of assessment. Despite not setting aside the revision order, the court decided to remit the matter back to the respondent to provide the petitioner with a personal hearing within two weeks. The petitioner was instructed to present all relevant documents, and the respondent was directed to pass further orders within four weeks after the hearing.

In conclusion, the writ petition was disposed of with the direction to afford the petitioner a personal hearing, emphasizing the importance of procedural fairness and natural justice in matters of tax assessment.