2021 (11) TMI 1169 - HC - VAT and Sales Tax

Jurisdiction of Respondent to issue SCN - Respondent submits that assessment will be completed by the jurisdictional Assessing Officer after furnishing the details called for recording the same this writ petition is disposed of by directing the respondent to pass a speaking order in show cause notice dated 09.08.2018 within a period of 90 days from the date of receipt of copy of this order - HELD THAT - The request of the petitioner to the respondent to furnish the information based on which the demand has been quantified shall be furnished by the respondents within a period of 30 days from the date of receipt of copy of this order. It is made clear that the petitioner shall be given an opportunity to file additional reply within a period of 30 days thereafter. The Assessing Officer shall pass appropriate order within a period of 30 days thereafter in accordance with law after hearing the petitioner. Petition disposed off.

Summary

Issues:
Challenge to show cause notices issued by Commercial Tax Officer, jurisdiction of the respondent, requirement to pay balance tax and penalty, details of tax liability, revision of assessment by Assessing Officer, furnishing of details for assessment, completion of assessment process, opportunity to reply to show cause notice.

Challenge to Show Cause Notices:
The petitioner challenged show cause notices dated 09.08.2018 and 01.04.2019 issued by the Commercial Tax Officer, Enforcement and Intelligence Wing. The petitioner contested the jurisdiction of the respondent to issue the show cause notice and objected to the requirement in the notice dated 01.04.2019 asking to pay the balance tax and penalty without providing details of the tax liability. The petitioner argued that the Assessing Officer, not the respondent, is competent to revise the assessment.

Furnishing of Details for Assessment:
The petitioner requested the respondent to provide the information based on which the demand had been quantified. The court directed the respondent to furnish the required information within 30 days from the date of receipt of the order. Additionally, the petitioner was granted an opportunity to file an additional reply within 30 days after receiving the information. The Assessing Officer was instructed to pass an appropriate order within 30 days after hearing the petitioner.

Completion of Assessment Process:
The court ordered the respondent to pass a speaking order on the show cause notice dated 09.08.2018 within 90 days from the date of receipt of the order. It was clarified that the assessment would be completed by the jurisdictional Assessing Officer after receiving the details called for and recording the same. The petitioner was assured the opportunity to provide a proper reply once the necessary information was furnished.

In conclusion, the writ petition was disposed of with the directions for the respondent to comply with the timelines for providing information and completing the assessment process. The petitioner's concerns regarding jurisdiction and the lack of details in the show cause notices were addressed by the court, ensuring a fair opportunity for the petitioner to respond appropriately.