2021 (2) TMI 1210 - HC - VAT and Sales Tax

Principles of natural justice - Validity of assessment order - assessments have been finalized without affording an opportunity to the petitioner - HELD THAT - In this matter a request had been made for D7 records as early as in 2007 and the records were admittedly photo copied and handed over to the petitioner. Vide letter dated 30.10.2019 the petitioner sought another copy of the records on the ground that the earlier copies had been given to its advocate who had misplaced the same - the authorities have permitted the petitioner to inspect and verify the records in their premises rejecting the request for furnishing copies yet again. The assessment is set aside solely in the interests of substantial justice and to afford full compliance with the provision of natural justice and direct that a copy of the D7 records be furnished to the petitioner upon its remitting appropriate costs within a period of two weeks from today - petition allowed by way of remand.

Summary

Issues:
Challenge to assessment orders due to lack of opportunity to access D7 records for verification.

Analysis:
The petitioner, a commission agent, procures orders for various products within Tamil Nadu for vendors outside the state. The petitioner also acts as a broker for different deoiled cakes. The petitioner challenges two assessment orders, claiming they were finalized without granting an opportunity to access D7 records, which the petitioner asserts it is entitled to review. The petitioner relies on Circular No.7/2017 emphasizing the need for a full hearing before finalizing an assessment.

A request for D7 records was made in 2007, and the records were provided to the petitioner. Subsequently, in 2019, the petitioner requested another copy as the original was misplaced by their advocate. Despite being allowed to inspect the records on-site, the authorities refused to provide copies. The court sets aside the assessment orders to ensure compliance with natural justice, directing the authorities to furnish a copy of the D7 records to the petitioner upon payment of appropriate costs within two weeks.

The court schedules a hearing for the petitioner on March 25, 2021, with an order of assessment to be issued by April 26, 2021. No further notice will be given, and it is the petitioner's responsibility to obtain the copies within the specified timeframe. Failure to do so will result in the reinstatement of the challenged assessment orders. The writ petition is disposed of with no costs, and connected miscellaneous petitions are closed.