2021 (5) TMI 700 - HC - VAT and Sales Tax

Principles of Natural justice - opportunity of hearing not provided to petitioner - no pre-assessment proposal was received - HELD THAT - There is thus apparently violation of principles of natural justice and the impugned order is set aside. Let the petitioner appear before the Officer on Monday, the 17th of May, 2021, without anticipating any further notice in this regard, after hearing the petitioner either over video conference or by way of physical hearing, as may be mutually convenient and consideration of material that may be filed by the petitioner, pass an order of assessment, de novo, within a period of four (4) weeks thereafter, in accordance with the law. Petition disposed off.

Summary

Issues: Violation of principles of natural justice in assessment order under Tamil Nadu Value Added Tax Act, 2006.

Analysis:
- The petitioner challenged an assessment order dated 16.02.2021 under the Tamil Nadu Value Added Tax Act, 2006, alleging lack of opportunity and absence of pre-assessment proposal.
- The petitioner claimed not to have received two pre-revision notices dated 06.02.2020 and 18.12.2020 mentioned in the order.
- Due to the alleged violation of natural justice principles, an interim stay of recovery was granted until the next hearing scheduled for 28.04.2021.
- Despite no counter being filed, the respondent confirmed that the pre-revision notices were returned unserved, and no further notices were issued before the impugned order was passed directly.
- The Court found a clear violation of natural justice principles and set aside the impugned order, directing the petitioner to appear before the Officer on 17th May 2021 for a new assessment process.
- The petitioner was instructed to participate in the assessment process, either through video conference or physical hearing, and the Officer was directed to pass a fresh assessment order within four weeks, considering any material submitted by the petitioner.
- The writ petition was disposed of with no costs, and connected Miscellaneous Petitions were closed.

This judgment highlights the significance of adhering to principles of natural justice in assessment proceedings under the Tamil Nadu Value Added Tax Act, ensuring that parties are provided with adequate opportunities to present their case and respond to any proposals or notices. The Court's intervention in setting aside the order due to the lack of proper notice and granting a fresh assessment process emphasizes the importance of procedural fairness and due process in administrative actions, safeguarding the rights of individuals in such legal matters.