2018 (4) TMI 1380 - HC - VAT and Sales Tax

Validity of assessment order - opportunity of personal hearing - principles of natural justice - Held that - Perusal of the common order does not indicate that the writ Court has adverted to the mandatory requirement of personal hearing, contemplated under Section 22 (4) of Tamil Nadu Value Added Tax Act, 2006. But, having regard to the alternate remedy available under the statute, writ court has dismissed the writ petitions. Matter is remanded to the Assistant Commissioner (CT), (FAC), Mettupalayam Circle, Mettupalayam, assessing officer, who shall provide opportunity of personal hearing, to the appellant/writ petitioner, on the basis of the material available on record and pass orders in accordance with law - appeal allowed by way of remand.

Summary

Issues Involved:
1. Challenge to assessment orders for the years 2007-08 to 2011-12.
2. Requirement of personal hearing under Section 22(4) of TNVAT Act.
3. Compliance with statutory provisions in assessment proceedings.
4. Availability of alternative remedy of appeal.

Issue 1: Challenge to Assessment Orders:
The appellant challenged the assessment orders for the years 2007-08 to 2011-12 by filing writ petitions. The court dismissed the writ petitions, emphasizing that factual aspects had been considered by the Assessing Officer, and the petitioner should pursue the appellate remedy instead of bypassing it. The court granted liberty to file an appeal within 30 days to the Appellate Authority without rejection on the ground of limitation. Consequently, the appellant filed writ appeals against the dismissal of the writ petitions.

Issue 2: Requirement of Personal Hearing under Section 22(4) of TNVAT Act:
The appellant contended that the respondent failed to provide a personal hearing as mandated under Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006. Referring to relevant case law, the appellant argued that personal hearing should have been offered before passing the assessment order. The court examined the provisions of Section 22(4) and relevant case law, emphasizing the importance of providing a reasonable opportunity of being heard to the dealer before assessment.

Issue 3: Compliance with Statutory Provisions in Assessment Proceedings:
The court highlighted the significance of complying with statutory requirements in assessment proceedings. The learned senior counsel stressed that the statutory requirement should have been adhered to, emphasizing the need for proper compliance with the law. The court examined the relevant provisions of the TNVAT Act and previous judgments to ensure that the assessment process followed the prescribed legal procedures.

Issue 4: Availability of Alternative Remedy of Appeal:
The Additional Government Pleader argued that in cases of factual disputes, the appellant could resort to the alternative remedy of filing an appeal, where the right of hearing could also be insisted upon. The court considered the availability of the alternative remedy of appeal and the importance of pursuing such remedies in cases involving factual disputes. The court emphasized the importance of exhausting statutory remedies before seeking judicial intervention.

In conclusion, the court allowed the writ appeals, setting aside the common order made in the earlier writ petitions. The court remanded the matter back to the Assistant Commissioner for fresh consideration, emphasizing the provision of a personal hearing to the appellant. The court directed the assessing officer to pass orders in accordance with the law within a specified timeframe, without entertaining fresh materials. The judgment underscored the importance of compliance with statutory provisions, including the right to a personal hearing, in assessment proceedings under the TNVAT Act.