2017 (1) TMI 399 - HC - VAT and Sales Tax

Validity of assessment order - opportunity of being heard - Held that - the assessment has been completed ex-parte, this Court is inclined to grant an opportunity to the petitioner to go back before the assessing officer, subject to certain conditions - there will be a direction to the petitioner to pay 15% of the disputed tax within three weeks from the date of receipt of a copy of this order - petition allowed by way of remand.

Summary

Issues:
Challenge to assessment order under TNVAT Act for the year 2014-15.

Analysis:
The petitioner, a registered dealer under TNVAT Act and CST Act, challenged the assessment order dated 31.08.2016 for the year 2014-15. The petitioner did not file objections to the revision notice, leading to an ex-parte assessment by the respondent. The petitioner's counsel argued that the proviso to Section 19(2) of the TNVAT Act applies only to specific cases and raised various contentions, requesting another opportunity to present before the assessing officer.

Considering the ex-parte assessment, the Court decided to grant the petitioner another opportunity with certain conditions. The petitioner was directed to pay 15% of the disputed tax within three weeks. Upon compliance, the petitioner could treat the proceedings as a show cause notice, submit objections within 15 days, and have a personal hearing for reassessment by the respondent. Failure to meet the condition would result in dismissal of the writ petition, allowing the petitioner to seek remedies under the TNVAT Act/CST Act. The respondent was prohibited from taking coercive action for tax recovery if the conditional order was obeyed.

In conclusion, the writ petition was disposed of without costs, and the connected miscellaneous petition was closed. The judgment provided the petitioner with an opportunity to address the assessment issues under specific conditions, ensuring a fair chance to present their case before the assessing officer.