2015 (12) TMI 994 - HC - VAT and Sales Tax

TNVAT - Suppression - Assessee s request to grant sufficient time to collect documents and filing if final reply not considered - Held that - At the time of inspection conducted by the Enforcement Wing, the petitioner had produced certain documents and also filed a preliminary reply dated 28.08.2014, which is not denied by the respondents. But, the said documents and reply filed by the petitioner were not considered by the 1st respondent before passing the impugned orders dated 21.07.2015. Failure on the part the respondent in considering the reply as well as documents filed by the petitioner results in violation of principles of natural justice. Further, as the entire assessments are related to the consumption such as petrol, diesel, electrodes and cables for the use of the petitioner, necessary documents are to be verified by the 1st respondent. Despite the production of documents even before the Inspecting Officers, the same lost sight. In view of the same, the impugned orders are liable to be set aside. It is brought to the notice of this Court by the learned counsel for the petitioner that subsequent to the impugned orders, the Bank Account of the petitioner was attached. Since the assessment orders have been set aside now, the attachment of the petitioner s bank account shall be lifted forthwith. Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Seeking issuance of Writ of Certiorarified Mandamus to quash revised orders based on Audit Wing Inspection Report and direct fresh orders in accordance with Section 5 r/w Rule 8(5) of Tamil Nadu Value Added Tax Act, 2006.

Analysis:
The petitioner, a Miniratna Company with branches in Tamil Nadu, filed writ petitions challenging revised orders dated 21.07.2015 based on an Audit Wing Inspection Report. The petitioner alleged violation of principles of natural justice as the respondent failed to consider documents and reply submitted before passing the impugned orders. The petitioner sought relief due to the respondent's failure to consider their submissions.

The respondent, represented by the Additional Government Pleader, supported the orders passed, citing the petitioner's failure to file a necessary reply in time. However, the Court noted that at the time of inspection, the petitioner had produced documents and filed a preliminary reply, which were not considered by the respondent before passing the impugned orders. The Court found this failure to consider the petitioner's submissions as a violation of natural justice.

Consequently, the Court set aside the impugned orders and remanded the matter back to the respondent for fresh orders. The petitioner was directed to file additional reply and documents within two weeks, and the respondent was instructed to consider the same and pass necessary orders within six weeks after affording an opportunity of personal hearing. Additionally, the Court ordered the lifting of the attachment on the petitioner's bank account, as the assessment orders had been set aside.

In conclusion, the writ petitions were allowed with no costs, and connected Miscellaneous Petitions were closed. The judgment highlighted the importance of considering all submissions and documents by parties involved before passing orders to ensure the principles of natural justice are upheld.