2016 (11) TMI 979 - HC - VAT and Sales Tax

Jurisdiction of AO - M. P. Commercial Tax Act - the Assessing Officer did not consider the grounds raised in the application and rejected the application on the ground that inspite of the notice, petitioner did not appear - Held that - Keeping in view the manner in which the application has been rejected in a casual manner without adverting to consider the grounds raised in the application which is not permissible, the order dated 29/07/16 Annexure P-5 is quashed and we restore the application filed under Section 34 of the M. P. V. A. T. Act and direct the Assessing Officer to hear the petitioner and decide the application afresh by a speaking order - petition allowed - decided in favor of petitioner.

Summary

Issues:
Challenging ex parte assessment order under M. P. Commercial Tax Act.

Detailed Analysis:
The petitioner filed a writ petition under Article 226 and 227 of the Constitution challenging the order passed by the Assessing Officer under the M. P. Commercial Tax Act, which dismissed an application for setting aside an ex parte assessment order. The petitioner was issued a notice for assessment but did not appear before the Assessing Officer, leading to the ex parte assessment order being passed on 29/11/15.

The petitioner contended that on the date of assessment proceedings, he was confined to bed due to illness and filed an application under Section 34 of the M. P. VAT Act to set aside the ex parte order. A medical certificate supporting the petitioner's ailment was also submitted. However, the Assessing Officer rejected the application without considering the grounds raised or the medical certificate, solely citing the petitioner's non-appearance despite the notice.

The High Court observed that the Assessing Officer had rejected the application in a casual manner without proper consideration of the grounds presented. The court found merit in the petitioner's arguments and quashed the order dated 29/07/16, directing the Assessing Officer to hear the petitioner and decide the application afresh with a speaking order. The petitioner was instructed to appear before the Assessing Officer on 29th November, 2016, with a certified copy of the court's order for further proceedings.

Conclusively, the High Court allowed the petition, setting aside the ex parte assessment order and restoring the application under Section 34 of the M. P. V. A. T. Act for a fresh decision by the Assessing Officer, emphasizing the importance of due process and proper consideration of grounds raised by the petitioner in such matters.