2015 (10) TMI 450 - HC - VAT and Sales Tax

Challenge to impugned revised assessment orders - Violation of principle of natural justice - Held that - Despite the Circular issued by the Principal Secretary/Commissioner of Commercial Taxes dated 03.02.2014, wherein, in paragraph 3 (b), it is specifically stated that no order should be made without affording an opportunity to the dealer, the respondent, has passed the impugned orders by observing that no opportunity of personal hearing be provided. This sort of practice adopted by the respondent cannot be countenanced. Since the issue relates to mis-matching of taxable turnover on the basis of documentary evidences, it is the bounden duty of the respondent to give due opportunity to the petitioner. But, despite specific request made by the petitioner to afford an opportunity of personal hearing, the same was rejected by the respondent. Hence, this Court is of the view that on the ground of violation of principles of natural justice, the impugned orders deserve to be set aside. - Decided in favour of assessee.

Summary

Issues:
Challenge to revised assessment orders under TNVAT Act for failure to provide opportunity of personal hearing.

Analysis:
The petitioner, a dealer under TNVAT Act, challenged revised assessment orders for not providing a personal hearing. The petitioner, engaged in manufacturing re-rolled products, claimed the Enforcement Wing Officers' report was erroneous and lacked consideration of facts. The respondent issued notices for objections, but passed orders without allowing sufficient time for submission of necessary documents. The petitioner contended the orders violated principles of natural justice and statutory provisions requiring a personal hearing.

The learned counsel argued the impugned orders were against natural justice principles and failed to comply with Circular No.7 of 2014. The petitioner requested the cancelled dealers list to file objections, but the orders were passed without considering this request. The counsel sought to quash the orders based on these grounds.

The Additional Government Pleader agreed to fresh orders with reasonable opportunity for the petitioner. The Court noted the violation of natural justice principles by the respondent, as the Circular required affording an opportunity to the dealer before passing any order. The Court found the respondent's rejection of the petitioner's request for a personal hearing unacceptable, leading to the setting aside of the impugned orders.

The Court set aside the impugned orders and directed the petitioner to appear with all documentary evidence within ten days for a fresh assessment. The respondent was instructed to consider the documents and objections and pass appropriate orders within four weeks. The writ petitions were disposed of with these directions, and no costs were awarded.