2019 (1) TMI 130 - HC - VAT and Sales Tax

Principles of natural justice - opportunity of personal hearing to be provided even on non-filing of objections - Validity of revised assessment order - validity of consequential Form-B6 order, dated 29.04.2011 - TNGST Act - Held that - The Commissioner of Commercial Taxes, pursuant to the recommendations of the Hon ble Justice Sri Ramanujam Committee, has laid down certain procedures to be followed by the assessing authority before passing final order. That circular is binding on the respondents. It mandates that personal hearing shall be given even such an opportunity is asked or not. But, in contravention of the circular, without providing an opportunity of personal hearing, the respondent has passed the impugned orders. A Division Bench of this Court in the case of G.V.Cotton Mills (P) Ltd., Rep. by its Managing Director Vs. The Assistant Commissioner (CT), Avarayampalayam Assessment Circle Corporation of Shopping Complex, Coimbatore), 2018 (3) TMI 1617 - MADRAS HIGH COURT has held that the opportunity of personal hearing cannot be denied, even if the objections not filed. In this case, admittedly, the petitioner has not submitted his objections. Even then, the second respondent ought to have been provided an opportunity of personal hearing to the petitioner. But, the second respondent, has passed the impugned order, without giving an opportunity of personal hearing. Therefore, the revised assessment order dated 31.08.2010 is liable to be set aside and consequently, the subsequent order dated 29.04.2011 passed by the 2nd respondent is also liable to be aside. The matter is remanded back to the file of the second respondent for fresh assessment - petition allowed by way of remand.

Summary

Issues involved: Challenge to revised assessment order and Form-B6 order for the assessment year 2004-05 due to lack of opportunity for personal hearing and objections submission.

Analysis:
- The petitioner, a registered dealer under the Tamil Nadu General Sales Tax Act, challenged the revised assessment order and Form-B6 order issued by the second respondent without providing a proper opportunity for objections submission and personal hearing.
- The petitioner contended that the second respondent hurriedly passed the revised assessment order without allowing sufficient time for objections submission and personal hearing, leading to the filing of two writ petitions.
- The High Court noted that the pre-revision notice issued by the second respondent provided only seven days for submitting objections, and despite the petitioner not filing objections, the impugned orders were passed without a personal hearing.
- Referring to a circular mandating personal hearing even if objections were not filed, the Court emphasized the importance of providing such an opportunity as per legal requirements and judicial precedents.
- Citing a Division Bench decision, the Court reiterated that the failure to submit objections does not justify denying the opportunity of a personal hearing to the assessee.
- Consequently, the Court set aside the impugned orders and remanded the matter back to the second respondent for fresh assessment, directing the petitioner to file objections within 15 days and the second respondent to conduct a personal hearing within two weeks thereafter.
- The Court emphasized the need for a reasoned order on merits and compliance with the law, allowing the second respondent to take appropriate action if the petitioner fails to cooperate with the enquiry.
- Both writ petitions were disposed of with no costs, and the connected miscellaneous petitions were closed as a result of the judgment.