2020 (10) TMI 1298 - HC - VAT and Sales Tax

Principles of natural justice - no effective opportunity has been granted to the petitioner - HELD THAT - The impugned order of assessment is thus bad in law insofar as no effective opportunity has been granted to the petitioner and the same is thus set aside. Let the impugned order of assessment dated 24.01.2020 be treated as a show cause notice in response to which, the petitioner will file a preliminary reply within a period of four weeks from today without awaiting any further notice in this regard. If a reply is received from the petitioner within four (4) weeks, proceedings for assessment shall be taken up, the petitioner heard and an order of assessment be passed denovo in accordance with law. Petition disposed off.

Summary

Issues: Lack of furnishing particulars of dealers, fairness in assessment, setting aside the impugned order, granting effective opportunity, treating the order as a show cause notice, denovo assessment.

In this case, the main issue revolved around the failure to provide the petitioner with the necessary particulars of dealers whose registrations were allegedly canceled before completing the assessment process. The court noted that the impugned order of assessment did not provide the petitioner with an effective opportunity to respond to the allegations, rendering it legally flawed. Consequently, the court set aside the impugned order due to this lack of fairness in the assessment process.

The court, acknowledging the shortcomings in the assessment process, directed that the impugned order of assessment be considered as a show cause notice. The petitioner was given a period of four weeks to file a preliminary reply without the need for any further notice. The court emphasized that upon receiving the reply within the stipulated time frame, the assessment proceedings should be initiated. The petitioner would be given a chance to present their case, and a fresh order of assessment would be passed in accordance with the law, ensuring a fair and just assessment process.

Ultimately, the court disposed of the writ petition based on the terms outlined above, emphasizing the importance of fairness and providing adequate opportunities for the petitioner to respond to the allegations. The court's decision aimed to rectify the deficiencies in the assessment process and ensure that the petitioner's rights were upheld. The judgment highlighted the significance of conducting assessments in a transparent and just manner, respecting the principles of natural justice and due process.