2020 (3) TMI 731 - HC - VAT and Sales Tax

Principles of Natural Justice - validity of assessment order - HELD THAT - On account of the fact that the petitioner did not place certain facts before this Court, this Court, while considering the writ appeals held that there has been no violation of principles of natural justice and accordingly confirmed the order passed in the writ petitions. However, after elaborately hearing the learned counsel today, we find that certain important factual details were not placed before us when the writ appeals were heard. Though the petitioner is to be blamed for such an act, nevertheless the Court has to take into consideration the facts, which are undisputed and then take a decision and merely because there was a default committed by the petitioner, the Court cannot refuse to exercise the review jurisdiction especially when those undisputed facts will turn the dimension of the case. Review application allowed.

Summary

Issues:
Review of judgment in Writ appeals challenging assessment orders under Tamil Nadu Value Added Tax Act, 2006 for Assessment Years 2011-2016.

Detailed Analysis:

1. Principles of Natural Justice and Statutory Appellate Remedy:
The review application was filed to reconsider the judgment on Writ appeals challenging assessment orders under the Tamil Nadu Value Added Tax Act, 2006. The Single Judge had disposed of the writ petitions, stating that the petitioner needed to avail statutory appellate remedy before the Appellate Authority. The Court found that there was no error in directing the petitioner to file an appeal, considering the timelines of replies and opportunities given by the Assessing Officer.

2. Review Jurisdiction and Compliance with Natural Justice:
Upon further review, it was noted that certain factual details were not presented during the initial hearing. The Court acknowledged the undisputed facts, emphasizing that the petitioner had not been lethargic in submitting replies within the extended timeframes. The Court highlighted the importance of personal hearings and the need for Assessing Officers to consider objections raised by the petitioner before passing assessment orders.

3. Assessment Order Scrutiny and Review Decision:
The Court scrutinized the Assessment Order and found that it lacked consideration of crucial objections raised by the petitioner in their replies. The Court emphasized the necessity of granting a personal hearing based on the objections presented, which had not been done in this case. Consequently, the judgment in the Writ appeals was reviewed, and the Assessment Orders were set aside with directions for the petitioner to submit comprehensive objections and for the Assessing Officer to conduct a fresh assessment in accordance with the law.

4. Final Decision and Directions:
The Review Petition was allowed, recalling the judgment in the Writ appeals and setting aside the Assessment Orders. The petitioner was directed to treat the Assessment Orders as show cause notices and submit comprehensive objections within a specified timeframe. The Assessing Officer was instructed to conduct a fresh assessment, considering all objections and submissions made during the personal hearing, within a stipulated period to prevent coercive actions against the petitioner.

In conclusion, the High Court's judgment focused on the importance of adhering to principles of natural justice, granting personal hearings, and ensuring a fair assessment process under the relevant tax legislation.