2019 (8) TMI 908 - HC - VAT and Sales Tax

Deemed assessment - Section 22(2) of TNVAT Act - statutory appeal under Section 51 of TNVAT Act against the impugned orders - merits of the matter not looked into - HELD THAT - The impugned orders are set aside on the sole ground that it does not advert to the objections and give any reason whatsoever for not accepting the writ petitioner's reply to the revisional notice. In other words, it is made clear that this Court is not expressing any view or opinion on the merits of the matters. As revisional notices have already been given and as the writ petitioner has sent detailed objections, this Court is convinced that the statutorily imperative requirement under proviso to Section 27(2) of TNVAT Act viz., the requirement of giving reasonable opportunity to the writ petitioner to show cause against the impugned orders has been complied with. Therefore, without any further reference to the writ petitioner, based on the objections already filed, respondent shall pass the revised assessment orders afresh adverting to writ petitioner's reply/objections to revisional notices giving reasons qua the reply/objections of the writ petitioner. Petition disposed off.

Summary

Issues Involved:
1. Compliance with statutory requirements under the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) regarding revised assessment orders.
2. Adequacy of reasons provided for not accepting objections raised by the writ petitioner.
3. Judicial intervention to ensure procedural fairness and expeditious resolution of assessment disputes.

Issue 1: Compliance with Statutory Requirements under TNVAT Act:
The judgment pertains to five writ petitions challenging revised assessment orders under the TNVAT Act for different assessment years. The court noted that the writ petitioner, a dealer in Hosiery garments, filed monthly returns under the TNVAT Act, leading to deemed assessments. The respondent issued revisional notices highlighting alleged defects in the returns and called for objections from the petitioner. The court emphasized the importance of providing a reasonable opportunity for the petitioner to show cause against the proposed revised assessments, in compliance with the statutory requirements of the TNVAT Act.

Issue 2: Adequacy of Reasons for Not Accepting Objections:
The primary contention raised by the writ petitioner was the lack of detailed reasons provided in the impugned orders for not accepting the objections raised in response to the revisional notices. The petitioner's objections, spanning 11 pages and 21 paragraphs, were summarized in a single sentence by the respondent, stating, "The dealer's reply has not been accepted." The court acknowledged the petitioner's argument that the impugned orders failed to articulate why and how the objections were deemed unacceptable. The court highlighted the necessity for the respondent to clearly state reasons for rejecting the petitioner's objections to ensure transparency and procedural fairness in the assessment process.

Issue 3: Judicial Intervention for Procedural Fairness and Timely Resolution:
In light of the deficiencies in the impugned orders, the court set aside the orders solely on the ground of inadequate reasoning for not accepting the petitioner's objections. The court refrained from expressing a view on the merits of the case but directed the respondent to pass revised assessment orders afresh, considering the objections raised by the petitioner and providing detailed reasons for any rejection. The court emphasized the importance of expeditiously resolving assessment disputes to prevent unnecessary delays in the assessment process. The court's intervention aimed to uphold procedural fairness and ensure compliance with statutory requirements under the TNVAT Act.

This detailed analysis of the judgment highlights the court's focus on procedural compliance, adequacy of reasons, and expeditious resolution of assessment disputes under the TNVAT Act, emphasizing the importance of providing a fair opportunity for parties to present their case and receive reasoned decisions from the authorities.