2017 (10) TMI 883 - HC - VAT and Sales Tax

Principles of Natural Justice - validity of assessment order - delay in communicating the impugned order - Held that - the matter is remanded to the respondent for fresh consideration, who shall issue notice not only to the petitioner but also to the other end dealers, through the respective Assessing Officer, and conduct an enquiry and redo the assessment in accordance with law - appeal allowed by way of remand.

Summary

Issues:
Challenge of assessment orders for multiple years on grounds of violation of natural justice.

Analysis:
The petitioner, a dealer in Automobiles registered under the Tamil Nadu Value Added Tax Act, challenged assessment orders for 2012-13 to 2015-16, citing violation of natural justice as the primary ground. The delay in approaching the court was explained by the petitioner, supported by tracking information showing receipt of orders on 26.08.2017. The Court noted a similar challenge for the assessment year 2011-12, where the matter was remanded for fresh consideration.

The Government Advocate acknowledged delays in communicating orders due to missing files, and the fact that a previous similar order was set aside for fresh consideration. The Court emphasized the need for proper assessment procedures under Section 27 of the Act, highlighting the importance of giving the dealer an opportunity to respond to proposed revisions. Guidelines were referenced from a previous case to conduct thorough enquiries in cases of web-based assessment information.

The petitioner denied any business transactions with certain dealers, emphasizing the Assessing Officer's duty to conduct a proper enquiry before reaching conclusions. The Court allowed the writ petition, setting aside the impugned orders and remanding the matter for fresh consideration, instructing notice to be issued to all relevant parties for a comprehensive assessment in accordance with the law.

Following the precedent set in a previous case, the present writ petitions were allowed, impugned orders were set aside, and the matter was remanded for fresh consideration. The Court directed the respondent to issue notices to all concerned parties, conduct a thorough enquiry, and redo the assessment in compliance with the law, including the assessment for the year 2011-12. No costs were awarded in these proceedings, and connected Writ Miscellaneous Petitions were closed accordingly.