2021 (4) TMI 976 - HC - VAT and Sales Tax

Validity of assessment order - reminder notice not received and no opportunity was provided for the petitioner for a personal hearing - HELD THAT - There are dissatisfaction with the manner in which the Commissioner of Commercial Taxes and the Officials working under him/her are discharging their duties to the detriment of all the Assessees and compelling several assessees to run to the High Court to set right the injustice caused to them on account of non-compliance with the principles of natural justice by the respective Assessing Officers. The impugned Assessment Order is set aside - matter is remitted to the 1st respondent for fresh consideration - petition allowed by way of remand.

Summary

Issues:
Challenge to Assessment Order under Central Sales Tax Act 1956 for the period April 2016 to March 2017; Violation of principles of natural justice in passing Assessment Order; Non-consideration of material filed by petitioner before the 2nd respondent; Remedy sought through a Writ Petition.

Analysis:
The Writ Petition challenges the Assessment Order passed by the 1st respondent under the Central Sales Tax Act 1956 for the period April 2016 to March 2017. The petitioner, originally under the 2nd respondent, filed 'F' and 'C' forms through letters before the 2nd respondent's office. Subsequently, the petitioner's file was transferred to the 1st respondent. The petitioner alleges not receiving a reminder notice and being deprived of a personal hearing before the impugned Assessment Order was passed by the 1st respondent, ignoring the 'C' and 'F' declaration forms filed earlier. The petitioner argues that the 1st respondent failed to obtain the record from the 2nd respondent and neglected to provide a personal hearing, as required. The petitioner even submitted a letter requesting a reassessment based on the previously filed forms, which was overlooked by the 1st respondent.

The Assistant Government Pleader representing the respondents admitted that the 1st respondent did not call for the record from the 2nd respondent, thus failing to consider the material filed by the petitioner. Although a reminder notice was served, the lack of a personal hearing was acknowledged. The Court noted several instances of Assessment Orders being passed without serving show cause notices, issuing reminders, providing personal hearings, or considering explanations and documents, leading to dissatisfaction with the conduct of the Commissioner of Commercial Taxes and the officials under him/her.

Consequently, the Court allowed the Writ Petition, setting aside the impugned Assessment Order due to the violation of natural justice principles and non-consideration of material filed by the petitioner. The matter was remitted to the 1st respondent for fresh consideration, directing the issuance of a show cause notice to the petitioner for objections, granting a personal hearing, and mandating a reasoned order in compliance with the law. The 4th respondent was ordered to pay costs to the petitioner, recoverable from the 1st respondent's salary, with disciplinary action initiated against the 1st respondent for the oversight. Any pending miscellaneous petitions were to be closed accordingly.