2019 (6) TMI 878 - HC - VAT and Sales Tax

Principles of natural justice - the writ petitioner sought time to file requisite records namely Books of Accounts and other related documents, in the personal hearing, but the impugned Assessment orders have been passed without granting time and by recording that the writ petitioners have not produced documents inspite of opportunity being given - applicability of Circular dated 03.02.2014. HELD THAT - Para 3 (a) (I) of the circular refers to cases, where time is requested by the dealer within a period of 15 days. Therefore, the question as to whether the aforesaid circular would apply to cases of this nature is left open as in the instant case, even without reference to the circular, there is no dispute that the writ petitioner dealer i.e., the writ petitioner assessee has sought time to produce documents in writing. No prejudice would be caused, if an opportunity is given to the writ petitioner. This Court is informed by the writ petitioner counsel that documents have already been furnished and if a date is fixed for personal hearing, they will go before the respondents - petition allowed by way of remand.

Summary

Issues:
- Assessment orders passed by the respondent without granting time to file requisite records
- Application of Circular No.7/2014 dated 03.02.2014 emphasizing principles of natural justice
- Setting aside impugned orders and scheduling personal hearings for each case

Analysis:

The High Court of Madras addressed three writ petitions concerning assessment orders passed by the respondent without granting time to file necessary records. The core issue across all petitions was the same, focusing on the denial of time for submission of documents during the assessment process. The court noted that the first petition was a second round of litigation, while the other two were new cases without prior disputes.

In the context of the Circular No.7/2014 dated 03.02.2014, which stresses adherence to principles of natural justice, the court referred to a previous order emphasizing the importance of granting reasonable opportunities to dealers before passing any order. The court highlighted the need for assessing officers to follow due process, including providing time for dealers to present objections and documents.

The court acknowledged the writ petitioner's request for time to produce documents and emphasized the significance of granting such opportunities in line with the principles of natural justice. Despite some ambiguity regarding the specific application of the circular, the court emphasized that no prejudice would arise from allowing the writ petitioner the requested time to present the necessary documents.

Consequently, the court set aside the impugned orders in all three writ petitions and scheduled personal hearings for each case on 02.07.2019. During the personal hearings, the documents already submitted by the writ petitioner would be examined, and fresh assessment orders were to be passed within three weeks from the hearing date. The court directed the respondent to communicate the new assessment orders to the writ petitioner promptly.

In conclusion, the court disposed of all three writ petitions with the outlined directions, emphasizing the importance of upholding principles of natural justice and providing adequate opportunities for dealers to present their case during the assessment process.