2017 (3) TMI 1426 - HC - VAT and Sales Tax

Validity of assessment order - the case of the petitioner is that the payments made by the petitioner had not been adjusted by the respondent, while passing the impugned assessment order - natural justice - Held that - the respondent is directed to dispose of the representation dated 25.10.2016, after affording an opportunity of personal hearing to the petitioner. The petitioner will be at liberty to file documents, if any, before the respondent, on which, he seeks to place reliance - the respondent will pass a speaking order; a copy of which will be served on the petitioner - appeal allowed by way of remand.

Summary

Issues:
Challenge to assessment order dated 15.10.2014 for the assessment year 2011-12. Non-receipt of pre-assessment notice by the petitioner. Alleged errors in the assessment order regarding payments made by the petitioner. Representation made under Section 84 of the Tamil Nadu Value Added Tax Act, 2006.

Analysis:

The High Court of Madras considered a writ petition challenging the assessment order dated 15.10.2014 for the assessment year 2011-12. The petitioner claimed that a pre-assessment notice dated 29.01.2014 was not received, thereby preventing the filing of objections. It was argued that the assessment proceedings stemmed from an inspection by the Enforcement Wing of the Sales Tax Department between 08.07.2011 and 12.07.2011 for the years 2007-08 to 2011-12. The petitioner contended that payments totaling &8377; 2,51,732/- and a cheque of &8377; 41,040/- were not adjusted in the assessment order, highlighting errors in the process.

Moreover, an additional payment of &8377; 2,12,710/- was made via a cheque dated 05.10.2016, which the petitioner asserted had not been accounted for in the assessment. A representation dated 25.10.2016 was submitted to the respondent, pointing out the errors in the assessment order, but no action had been taken on it. The respondent acknowledged the representation under Section 84 of the Tamil Nadu Value Added Tax Act, 2006, suggesting that the court could direct its disposal.

After hearing both parties, the Court found merit in directing the respondent to address the representation dated 25.10.2016 and provide an opportunity for a personal hearing to the petitioner. The respondent was instructed to pass a speaking order and serve a copy on the petitioner. No coercive measures were to be taken against the petitioner until the representation was disposed of, with a deadline of six weeks from the date of the court order for completion. The writ petition was disposed of accordingly, with no costs awarded.

This judgment emphasizes the importance of due process in tax assessments and the need for proper consideration of payments made by taxpayers. It underscores the significance of addressing representations promptly and ensuring fairness in administrative actions under the relevant tax legislation.