2020 (4) TMI 142 - HC - VAT and Sales Tax

Validity of assessment order - TNVAT Act - Officer has simply confirmed the assessment proposals without even a discussion as to the objections raised and responded to earlier - violation of principles of natural justice - HELD THAT - Objections have been filed by the petitioner on 03.09.2018 in response to a pre-assessment proposal dated 24.08.2018 that have been extracted in full in the impunged order. The Assessing Authority appears to have issued one more notice on 14.09.2018, to which admittedly the petitioner did not reply. Thereafter, the Officer has simply confirmed the assessment proposals without even a discussion as to the objections raised and responded to earlier. It is evident from a reading of the impugned order that principles of natural justice stand violated. The impugned order is cryptic, non-speaking and non-application of mind is writ large thereupon. There are laches on the part of the petitioner as well who has filed the Writ Petition only now challenging an order passed in August, 2019 - the petitioner shall appear before the Assessing Authority on Friday, the 20th of March, 2020 at 10.0 a.m. without expecting any further notice in this regard along with proof of payment of 10% of the demand. If the condition is found to have been complied with, proceedings for assessment shall be taken up de novo and after hearing the petitioner, an order of assessment shall be passed within four (4) weeks from 20.03.2020. Petition disposed off.

Summary

Issues:
Challenge to assessment order under Tamil Nadu Value Added Tax Act, 2006 for the period 2013-14, violation of principles of natural justice in the assessment process, delay in filing the Writ Petition challenging the order.

Analysis:
The Writ Petition challenges an assessment order dated 30.08.2019 under the Tamil Nadu Value Added Tax Act, 2006 for the period 2013-14. The petitioner had filed objections on 03.09.2018 in response to a pre-assessment proposal dated 24.08.2018, which were not adequately addressed by the Assessing Authority. The impugned order was found to be cryptic, non-speaking, and lacking in application of mind, thus violating the principles of natural justice. The Court noted the delay in filing the Writ Petition, pointing out laches on the part of the petitioner.

The Court set aside the impugned order but imposed a condition on the petitioner to remit 10% of the disputed demand by 20.03.2020 to avail the benefit of the direction. The petitioner was directed to appear before the Assessing Authority on 20.03.2020 without further notice, providing proof of payment. If the condition was met, assessment proceedings would be conducted de novo, and an order would be passed within four weeks from 20.03.2020. Failure to comply with the condition or appear on the specified date would result in the revival of the impugned assessment order.

In conclusion, the Writ Petition was disposed of with no costs, and the connected Miscellaneous petition was closed. The judgment highlights the importance of adherence to principles of natural justice in assessment proceedings and emphasizes the need for timely legal actions to challenge orders.