2018 (7) TMI 1662 - HC - VAT and Sales Tax

Principles of Natural Justice - the assessing officer has failed to afford the opportunity of personal hearing to petitioner - Held that - From the consideration of the materials it is clearly seen that without affording an opportunity of personal hearing, the impugned order came to be passed. The Head of the Department i.e., the Commissioner of Commercial Tax has given clear instruction as to personal hearing. It is mandated in Circular dated 03.02.2014 issued by him. The impugned orders passed by the respondent are set aside and the matter is remanded back to the respondent for fresh consideration - petition allowed by way of remand.

Summary

Issues:
Violation of principles of natural justice by not affording an opportunity of personal hearing before passing impugned orders.

Analysis:
The petitioner, a registered dealer under the TNVAT Act, was subjected to inspection by the Enforcement Wing of the respondent Department. Subsequently, pre-revision notices were issued regarding 5 proposals for the assessment years 2013-14, 2014-15, and 2015-16. The petitioner did not file objections, leading to the confirmation of proposals without a personal hearing. The petitioner contended that the assessing officer failed to provide a mandatory personal hearing opportunity, as per department instructions, irrespective of objections filed.

The petitioner argued that the assessing officer should independently assess proposals, not merely act on inspection team reports. The Court noted that the impugned orders were passed without affording a personal hearing, contrary to the Commissioner of Commercial Tax's clear instruction mandating personal hearing, as per Circular dated 03.02.2014. The Court referenced a Division Bench judgment emphasizing the necessity of a personal hearing, even if objections are not submitted.

In light of the above, the Court set aside the impugned orders and remanded the matter back to the respondent for fresh consideration. The petitioner was directed to submit objections within 15 days and cooperate in the proceedings. The respondent was instructed to pass orders on merits, ensuring a personal hearing within one month of receiving objections. The writ petitions were disposed of without costs, and connected miscellaneous petitions were closed.