2020 (9) TMI 391 - HC - VAT and Sales Tax

Violation of the principles of natural justice - Request for personal hearing rejected - Validity of assessment order - periods 2010-11 to 2015-16 - HELD THAT - A pre-assessment proposal dated 24.04.2019 was issued by the Officer, wherein no reference was made to communication dated 13.08.2018, though the petitioner has placed on record at page 14 of the document compilation an acknowledgement for filing of the letter requesting personal hearing - In response to the aforesaid notice, the petitioner appears to have filed a letter dated 15.06.2019, for which there is no acknowledgement on record, seeking some more time to submit the required documents. The assessments have however been finalized vide impugned orders of assessment dated 31.07.2019 without reference to either of the requests of the petitioner. Thus, no effective opportunity has been extended to the petitioner in this matter and in the interests of substantial justice, it would be appropriate for the petitioner to be heard in person in the light of this Courts specific direction to that effect vide order dated 11.04.2018 and the petitioners request for personal hearing in letter dated 13.08.2018 - impugned orders are set aside - Matter restored before the AO.

Summary

Issues: Violation of principles of natural justice in assessment orders under the Tamil Nadu Value Added Tax Act, 2006 for the periods 2010-11 to 2015-16.

Analysis:
1. The petitioner challenged assessment orders dated 31.07.2019 under the Tamil Nadu Value Added Tax Act, 2006, for the periods 2010-11 to 2015-16. The Court noted that a show cause notice had been issued to the petitioner for the same periods during the hearing of a previous writ petition. The Court directed the petitioner to respond to the notice within 15 days and requested a personal hearing, emphasizing compliance with natural justice principles.

2. The petitioner submitted a written reply and requested a personal hearing as per the Court's direction. However, the assessing officer issued a pre-assessment proposal without acknowledging the petitioner's request. Subsequently, the petitioner sought additional time to submit documents, but the assessments were finalized on 31.07.2019 without considering the petitioner's requests, leading to a lack of effective opportunity for the petitioner.

3. The Court found that the petitioner was not adequately heard, contrary to the Court's specific direction for a personal hearing and the petitioner's request for the same. In the interest of substantial justice, the Court set aside the impugned orders and directed the petitioner to appear before the Assessing Officer on 14.09.2020, providing all necessary records and details. The Assessing Officer was instructed to pass orders within four weeks, failing which the original assessment orders would be reinstated.

4. The Court disposed of the writ petitions with no costs, emphasizing the importance of providing a fair opportunity for the petitioner to present their case. The judgment highlighted the significance of adhering to principles of natural justice and ensuring that parties are heard before final decisions are made in assessment proceedings under the Tamil Nadu Value Added Tax Act, 2006.

5. The judgment serves as a reminder of the fundamental right to be heard and the importance of procedural fairness in administrative actions, particularly in matters of taxation. It underscores the Court's role in safeguarding the principles of natural justice and ensuring that individuals are given a meaningful opportunity to present their case before decisions affecting their rights are made.