2019 (8) TMI 478 - HC - VAT and Sales Tax

Validity of reassessment order - challenge on the ground that the incriminating materials used against the petitioner while concluding the assessment by the prescribed authority were not made available to the petitioner despite the specific request made by the petitioner - principles of natural justice - HELD THAT - The documents pertaining to the inspection report sought by the petitioner being assured to be provided to the petitioner within 7 days and the petitioner being provided an opportunity to file reply after submitting the documents, the writ petition does not survive for consideration. However, considering the voluminous documents to be examined by the petitioner, it would be appropriate to provide an opportunity of four weeks to the petitioner to file objections/reply. Petition allowed by way of remand.

Summary

Issues:
Challenge to re-assessment order and demand notice based on non-availability of incriminating materials.

Analysis:
The petitioner challenged the re-assessment order and demand notice primarily on the ground that the incriminating materials used were not provided despite specific requests. The Additional Government Advocate submitted a communication assuring the provision of documents related to the inspection report within 7 days, allowing the petitioner to respond within 7 days after receiving the documents. The court noted the assurance of document provision and opportunity for reply, leading to the disposal of the writ petition. The petitioner was granted four weeks to file objections/reply due to the voluminous documents. The court directed the respondent to consider the petitioner's reply and conclude the re-assessment within 30 days of receiving the response. Consequently, the re-assessment order and demand notice were quashed, and the proceedings were remitted to the respondent to complete the re-assessment as per the directions provided.

This judgment highlights the importance of providing access to relevant documents and ensuring a fair opportunity for the petitioner to respond in tax assessment matters. The court emphasized the need for procedural fairness by granting the petitioner time to examine the documents and submit objections/reply. The decision to quash the re-assessment order and demand notice underscores the significance of transparency and adherence to legal procedures in tax assessments. The directive to conclude the re-assessment within a specified timeframe reflects the court's commitment to ensuring timely resolution of tax matters while upholding the principles of natural justice. Overall, the judgment reinforces the principles of due process and fairness in administrative proceedings, particularly in the context of tax assessments.