2019 (1) TMI 362 - HC - VAT and Sales Tax

Principles of natural justice - ex-parte assessment - assessment notices not issued to petitioner - compliance with requirement of pre-deposit - Held that - It is an admitted position that the proceedings before the Assessing Officer went ex-parte as the petitioner was not served with the assessment notices issued by the concerned authority. It may be that such notice could not be served on account of closure of the business of the petitioner, nonetheless, it is a matter of fact that the assessment was exparte. In these circumstances, this court is inclined to remit the proceedings back to the Assessing Officer for fresh consideration - petition allowed by way of remand.

Summary

Issues involved:
Challenge to orders of Gujarat Value Added Tax Tribunal, first appellate authority, and assessment order based on non-compliance with pre-deposit requirement.

Analysis:
The petitioner challenged orders of the Gujarat Value Added Tax Tribunal, the first appellate authority, and an assessment order due to non-compliance with the pre-deposit requirement. The petitioner's business was of PVC resin, Acrylic sheets, and plastic items, which closed in March 2015 leading to cancellation of registration. The assessment proceedings were conducted ex-parte, resulting in disallowance of input tax credit, leading to a substantial demand. The first appellate authority directed a pre-deposit, which was not complied with, leading to dismissal of appeals. The Tribunal confirmed the pre-deposit order, leading to dismissal of second appeals despite no pre-deposit requirement under the CST Act. The petitioner argued that the tax credit was not considered, and parity with another vendor should apply. The Government Pleader defended the orders, citing discretion exercised by the authorities. The High Court noted the ex-parte assessment due to non-service of notices, leading to the decision to remit the matter back to the Assessing Officer for fresh consideration. The High Court allowed the petition, quashed the assessment order, and directed the petitioner to appear before the Assessing Officer for fresh orders, bearing costs for past non-appearance.

In conclusion, the High Court's judgment allowed the petition, quashed the assessment order, and remitted the matter back to the Assessing Officer for fresh consideration due to ex-parte assessment proceedings. The petitioner was directed to appear before the Assessing Officer, bearing costs for past non-appearance. The judgment emphasized the need for strict terms for the petitioner's participation and correct application of legal principles in the fresh consideration.