2018 (10) TMI 884 - HC - VAT and Sales Tax

Rate of tax - sale of imported copiers - C forms could not be produced - Assessing Officer has completed the assessment and passed the impugned order without any reply from the petitioner with supportive documents - principles of natural justice - Held that - Non filing of such reply with supportive documents is explained by the petitioner. It is also seen from the petitioner s request made on 23.07.2018 that they sought for furnishing copy of returns and enclosures so as to enable them to collect the duplicate C-Form from buyers in other state, since the entire records were washed away in the flood took place in the year 2015. The Assessing Officer ought to have given one more opportunity by furnishing the copy of the returns and enclosures to the petitioner so as to enable them to file their reply with supportive documents - the matter has to go back to the Assessing Officer for redoing the assessment once again after giving sufficient opportunity to the petitioner - appeal allowed by way of remand.

Summary

Issues:
Challenge against assessment order for the assessment year 2004-05 based on turnover rates, failure to respond to notices, loss of records due to natural disaster, denial of opportunity to submit necessary documents, and lack of reasoning in the impugned order.

Analysis:
The petitioner, a registered dealer, challenged the assessment order for the assessment year 2004-05, which proposed different turnover rates for purchases from unregistered dealers and sales of imported copiers. Initially, a writ petition was filed challenging the relevant provision of the Sales Tax Act, but it was dismissed. Subsequently, new notices were issued proposing a higher tax rate due to the absence of Form C declaration. The petitioner, citing loss of records in a flood, requested copies of returns and a personal hearing to obtain duplicate C forms. The Assessing Officer, however, proceeded with the assessment at a higher rate without considering the petitioner's circumstances.

The petitioner's counsel argued that the Assessing Officer should have provided copies of returns to enable the submission of necessary documents, considering the loss of records in the flood. The Additional Government Pleader contended that the petitioner had opportunities to respond but failed to do so adequately. The court noted the petitioner's request for copies of returns to collect necessary documents and found that the Assessing Officer should have given another opportunity before finalizing the assessment.

The court held that the Assessing Officer erred in not providing the petitioner with the necessary documents to respond effectively. The matter was remitted back to the Assessing Officer with specific directions: to provide copies of returns to the petitioner, allow submission of necessary documents within a specified period, schedule a personal hearing, and pass fresh orders based on the submissions and in accordance with the law. The writ petition was allowed, the impugned order was set aside, and no costs were awarded in the judgment.