2017 (3) TMI 1110 - HC - VAT and Sales Tax

Principles of natural justice - the petitioner was not at all informed on what date they should appear for personal hearing - circular dated 20.04.2001 - Held that - when the assessee asks for personal hearing, the same should be given by the assessing authority - In this case, the assessing authority himself though has offered such opportunity, as could be seen from the notice dated 29.12.2016 itself, unfortunately, has not subsequently communicated the date of such personal hearing, especially when the petitioner has specifically made such request through their communications dated 31.12.2016 and 11.01.2017. - the assessing authority, even after receipt of communications, has not given such opportunity of personal hearing to the petitioner and on the other hand, passed the impugned order of the assessment based on the reply submitted by the petitioner already. Such course of action adopted by the assessing authority is not in strict compliance of the principles of natural justice - matter remitted back to the assessing authority to pass fresh assessment order - appeal allowed by way of remand.

Summary

Issues:
Challenging assessment orders for multiple years due to lack of personal hearing opportunity and mismatch in purchase figures leading to impugned assessment orders.

Analysis:
The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act, challenged assessment orders for the years 2010-2015, alleging violation of natural justice principles as no personal hearing was granted despite requests. The respondent claimed discrepancies in purchase figures between profit/loss accounts and monthly returns, relying on web reports. The petitioner sought a personal hearing, citing the circular issued by the Department and relevant case laws. The respondent argued that a show cause notice was given, and orders were passed after considering the petitioner's reply.

The court noted that the petitioner was not informed of the date for personal hearing, despite specific requests in their letters. Referring to a circular, the court emphasized the importance of granting a personal hearing when requested by the assessee. Citing a Division Bench decision, it held that fairness in procedure mandates providing personal hearing upon request. The court found the assessing authority's failure to communicate the date for a hearing as a violation of natural justice, ordering a fresh assessment with a personal hearing opportunity.

Additionally, the petitioner contested the assessment based on web reports, arguing that details were not provided, referencing a judgment. The court, inclined to set aside the assessment, allowed the petitioner to raise all grounds before the assessing authority, emphasizing consideration of objections and adherence to procedural directions from a previous case. Consequently, all writ petitions were allowed, assessment orders set aside, and the matter remitted for a fresh assessment with a personal hearing and procedural compliance within eight weeks.