2021 (6) TMI 998 - HC - VAT and Sales Tax

Violation of principles of natural justice - validity of assessment order - effective opportunity of personal hearing of the assessee - HELD THAT - No time was granted by the authority and it is understood by the learned counsel appearing for the petitioner that the petitioner and the respondent officer were in touch telephonically with the further requirements that were sought for by the Assessing Officer to complete the assessment - The consultant of the petitioner was affected by COVID-19, as a result that the petitioner was unable to procure and produce the details sought for by the officer. In support of this submission, medical records have been filed at page Nos.58 59 of the typed-set. This documents are not in dispute. The impugned order has come to be passed on 30.03.2021 without affording an opportunity of personal hearing. This is an assessment which, in terms of Section 27 of the Act, which requires an effective opportunity of personal hearing of the assessee. Courts have consistently interpreted the phrase 'effective opportunity' to mean and include an opportunity of personal hearing as well. In this case, since admittedly the petitioner has not been heard in person, the impugned order has been passed in violation of principles of natural justice and without affording adequate opportunity of personal hearing to put forth its case - petition allowed.

Summary

Issues: Violation of principles of natural justice in an assessment order

In this case, the petitioner challenged an assessment order dated 30.03.2021 under the Tamil Nadu Value Added Tax Act, 2006, primarily on the grounds of violation of principles of natural justice. The petitioner had submitted a reply to a notice received from the authority, requesting additional time due to difficulties faced during the COVID-19 pandemic. Despite telephonic communication between the petitioner and the assessing officer regarding further requirements, no additional time was granted. The petitioner's consultant was affected by COVID-19, hindering the procurement of necessary details. The impugned order was passed without affording an opportunity for personal hearing, which is mandated under Section 27 of the Act. The court held that the order was passed in violation of principles of natural justice and set it aside.

The court acknowledged the challenges posed by the pandemic and fixed an outer time-limit of sixteen weeks for the initiation of proceedings de novo. This time frame was set to allow both parties to proceed with the assessment in a time-bound manner. The court emphasized the importance of providing an effective opportunity for personal hearing to the assessee, as required by law. Despite the difficulties faced due to the pandemic, the court ensured that the petitioner would have sufficient time to collate data and respond to pre-assessment proposals. Ultimately, the writ petition was allowed, and the court closed the connected Miscellaneous Petition without imposing any costs.