2019 (2) TMI 1474 - HC - VAT and Sales Tax

Validity of assessment order - Tamil Nadu Tax on Luxuries Act 1981 - period 2014-15 - Held that - The assessee shall appear before the Assessing Authority at the first instance on 19.02.2019 at 10.30 a.m. along with all materials in support of its returns of turnover. Orders shall be passed by the Assessing Officer within a period of one (1) month from the date of conclusion of the personal hearing - The assessment is set aside - petition disposed off.

Summary

Issues:
Challenge to assessment order under Tamil Nadu Tax on Luxuries Act, 1981 for the period 2014-15.

Analysis:
The petitioner challenged the assessment order dated 03.01.2019 under the Tamil Nadu Tax on Luxuries Act, 1981 for the period 2014-15. The court noted that a similar challenge was considered previously for the same petitioner in a batch of writ petitions. The assessment was based on irregularities noticed during an inspection by Enforcement Wing officials, leading to pre-assessment notices and objections filed by the petitioner. The petitioner requested a personal hearing, which was initially granted but later rejected by the Assessing Authority. The court emphasized the importance of providing a fair opportunity of hearing to the assessee before finalizing assessments, as reiterated in various circulars issued by the Commercial Taxes Department. The court referred to Circular Acts emphasizing fair opportunity and adherence to natural justice principles, stating that personal hearing should be granted upon request by the assessee. The Division Bench's previous judgment highlighted the significance of reasonable opportunity to show cause, including the provision of personal hearing in complex factual disputes. Despite circular instructions, the court observed that the assessment orders were in violation of the fair hearing principles, leading to the setting aside of the assessment. The court directed the assessee to appear before the Assessing Authority with supporting materials, emphasizing the need for a fair process in assessment proceedings. The writ petition was disposed of accordingly, with the Assessing Officer instructed to pass orders within a month from the conclusion of the personal hearing.