2021 (5) TMI 592 - HC - VAT and Sales Tax

Violation of principles of natural justice - without serving the Inspection Report, the respondent passed the impugned order - HELD THAT - A perusal of the impugned order does not whisper about the request of the petitioner for furnishing of Inspection Report conducted by the Enforcement officials. Therefore, it can be really inferred that assessment order, dated 28.03.2018 came to be passed without furnishing the documents sought for by the petitioner, particularly, the Inspection Report of the Enforcement Wing Officials. The petitioner has also filed bank statements with his objections in respect of the assessment year 2015-2016. However, the Assessing Authority has not considered the bank statements also. Therefore, it amounts to violation of principles of natural justice. The matter is remitted back to the Assessing Authority concerned for consideration afresh - Petition allowed by way of remand.

Summary

Issues: Challenging assessment order under TNVAT Act, 2006 based on lack of natural justice principles.

Analysis:
1. Background: The petitioner challenged the respondent's proceedings in TIN No. 33633441305/2015-16 through a writ petition.

2. Self Assessment Scheme: The petitioner filed returns under the Self Assessment Scheme as per Section 22(2) of the TNVAT Act, 2006. The respondent issued a notice for revision of assessment under Section 27 of the TNVAT Act, despite detailed objections filed by the petitioner regarding the proposal. The Assessment Authority proceeded based on the Enforcement Wing Officials' report without providing the Inspection Report requested by the petitioner.

3. Violation of Natural Justice: The impugned order passed on 28.03.2018 did not mention the petitioner's request for the Inspection Report. The assessment order was passed without furnishing the requested documents, including the Inspection Report and the petitioner's bank statements. This failure to consider crucial documents amounted to a violation of natural justice principles, warranting the setting aside of the order.

4. Judgment: The High Court set aside the impugned order and remitted the matter back to the Assessing Authority for fresh consideration. The respondent was directed to issue a fresh notice, allowing the petitioner to file objections to the Inspection Report and providing an opportunity for a personal hearing. The Assessing Authority was instructed to make decisions without being influenced by the Enforcement Wing official's report.

5. Disposition: The writ petition was disposed of with no costs, and the connected miscellaneous petition was closed. The judgment emphasized the importance of upholding principles of natural justice in assessment proceedings under the TNVAT Act, 2006.