2020 (12) TMI 1327 - HC - VAT and Sales Tax

Principles of natural justice - validity of assessment order filed in the rectification application - seeking reconsideration of issue afresh based on the documents relied on by the petitioner - HELD THAT - Ext.P14 order passed by the 2nd respondent in Ext.P13 rectification application filed by the petitioner is one in violation of the principles of natural justice, since the petitioner was not afforded with an opportunity of being heard. Therefore, the said order is liable to be set aside and the 2nd respondent has to reconsider that application, with notice to the petitioner and after affording it an opportunity of being heard. This writ petition is allowed by setting aside Ext.P14 order dated 18.11.2020 of the 2nd respondent, by directing the 2nd respondent to reconsider Ext.P13 rectification application filed by the petitioner and take an appropriate decision, with notice to the petitioner and after affording it an opportunity of being heard. A decision in this regard shall be taken as expeditiously as possible, at any rate, within a period of one month from this date.

Summary

Issues involved: Violation of principles of natural justice in passing orders, Opportunity of being heard not afforded in rectification application, Setting aside of order, Reconsideration of rectification application, Stay on recovery proceedings

In the judgment delivered by the High Court of Kerala, the petitioner filed a writ petition under Article 226 seeking to quash an assessment order and a rectification order issued by the Sales Tax Officer under the Kerala Value Added Tax Act for the assessment year 2011-12. The petitioner also sought a mandamus for reconsideration of the issue based on documents and legal principles cited in a previous judgment. The court noted the contention of violation of natural justice in the orders. The Government Pleader pointed out that while the assessment order granted a personal hearing, the rectification order was passed without affording the petitioner an opportunity of being heard. Consequently, the court held that the rectification order was indeed in violation of natural justice and directed the respondent to reconsider the rectification application after providing the petitioner with a proper opportunity of being heard. The court allowed the writ petition, set aside the rectification order, and instructed the respondent to take a decision on the rectification application within one month, keeping any recovery proceedings on hold until then. The challenge against the assessment order was left open for reconsideration alongside the rectification application. This judgment emphasizes the importance of adhering to the principles of natural justice in administrative decisions and the right to be heard before adverse orders are passed.