2017 (10) TMI 946 - HC - VAT and Sales Tax

Principles of natural justice - service of notice - the petitioner was not issued any notice prior to completing the assessment and they had no opportunity to rebut the allegations against them - Held that - the first respondent did not afford a reasonable opportunity to the petitioner before impugned assessment orders were passed. For the above reasons, this Court is inclined to grant relief to the petitioner - petitioners are directed to treat the impugned proceedings as show cause notice and to file their objections - petition allowed by way of remand.

Summary

Issues:
Challenge to two assessment orders for the year 2015-16 under TNVAT Act 2006 without proper notice and opportunity for objection.

Analysis:
The petitioner, a dealer in leather, chemicals, challenged two assessment orders for the year 2015-16 under the TNVAT Act 2006. The court noted that the assessing officer did not provide proper notice or opportunity for objection before passing the impugned orders. The orders were solely based on the findings of Enforcement Wing officials, without giving the petitioner a chance to rebut the allegations against them. The court emphasized that the petitioner was not issued any notice prior to the assessment and had no opportunity to defend themselves against the allegations. The petitioner claimed that the cheques were taken under threat and coercion by the Enforcement Wing officials, and subsequently dishonored for lack of funds. The court highlighted that the assessing officer should not solely rely on the proposal from Enforcement Wing officials but should issue a revision notice and consider objections from the dealer before framing the assessment.

The court directed the petitioner to treat the impugned proceedings as a show cause notice and file objections within 15 days. The assessing officer was instructed to provide a personal hearing to the petitioner and conduct a fresh assessment in accordance with the law. The court emphasized the importance of affording a reasonable opportunity to the dealer before passing assessment orders. The judgment cited previous decisions to underscore the legal requirement for proper procedure in assessments. The court's decision aimed to ensure fairness and adherence to statutory powers in the assessment process, highlighting the need for due process and opportunity for the dealer to present their case effectively.