2016 (3) TMI 983 - HC - VAT and Sales Tax

Validity of order passed ex parte in violation of natural justice - Petitioner unable to represent its case on medical ground - Input Tax Credit - Held that - in view of the decision of Hon ble Apex Court in the case of Canara Bank v. V.K. Awasthy 2005 (3) TMI 476 - SUPREME COURT OF INDIA , the order passed is in violation of the principles of natural justice as per the law. Therefore, liable to be set aside. - Decided in favour of appellant

Summary

Issues:
Challenge to ex parte assessment order due to inability to appear on medical grounds.

Analysis:
1. The petitioner, a registered dealer under the PVAT Act, challenged an ex parte assessment order for the year 2010-11 due to the inability to represent the case on the scheduled date because of medical reasons.
2. The petitioner filed returns and an annual statement, but the assessment order created a substantial demand under the PVAT Act and the CST Act.
3. The respondent argued that the petitioner did not avail the alternative remedy of appeal before the Deputy Excise and Taxation Commissioner and did not appear on the date of the order.
4. After hearing both parties, the court found that the petitioner was unable to appear before the authorities on the assessment order date due to medical reasons, thus denying a fair opportunity to present their case.
5. The court cited the principles of natural justice, emphasizing the importance of giving notice, a precise case to meet, adequate time for representation, and the audi alteram partem rule to avoid condemning unheard.
6. Referring to previous judgments, the court highlighted circumstances where a writ petition can be entertained without insisting on statutory remedies, such as failure of natural justice.
7. Consequently, the court set aside the ex parte assessment order, directing the Assessing Officer to reexamine the petitioner's claim for Input Tax Credit, allowing the submission of relevant documents and ensuring compliance with the law. The parties were directed to appear before the Assessing Officer on a specified date for further proceedings.