2022 (3) TMI 930 - HC - VAT and Sales Tax

Validity of assessment order - appellant did not participate in the personal hearing - HELD THAT - It is seen from the records that before passing the order of assessment dated 09.08.2021, a second show cause notice dated 13.07.2021 was issued fixing the date for personal hearing as 19.07.2021. Even though the appellant cites several reason for non appearance, they failed to seek an adjournment on the date fixed for hearing and sought for an opportunity of hearing on another date. As the appellant did not avail the opportunity of hearing granted to them, the assessing authority has passed the order of assessment. The learned Judge, taking note of the facts, has rightly directed the appellant to assail the order of the assessing officer by filing an appeal to the appellate authority. There are no reason to interfere with such a direction issued by the learned Judge - appeal dismissed.

Summary

Issues:
Validity and correctness of the order dismissing the writ petition challenging assessment orders.

Analysis:
The appellant, a registered dealer under the Tamil Nadu Value Added Tax Act, 2006, engaged in manpower supply, faced discrepancies in inspection leading to tax demands. The appellant filed revised returns and paid the demanded tax. Subsequent show cause notices were issued, and assessment orders passed without proper enquiry. The appellant filed writ petitions challenging the assessment orders, but the learned Judge dismissed them, granting the appellant the liberty to appeal to the Appellate Commissioner. The appellant contested the dismissal, citing jurisdictional issues and delays in responding to show cause notices.

The appellant argued that the assessment orders were passed without jurisdiction and suffered from illegalities. Citing a previous case, the appellant contended that the jurisdictional facts behind the show cause notices should have been examined. The appellant highlighted disruptions due to COVID-19 lockdown, affecting their ability to respond to the second show cause notice promptly. The appellant claimed that the learned Judge erred in dismissing the writ petition based on non-submission of a reply to the show cause notice.

On the other hand, the Government Advocate argued that the dispute revolved around tax computation issues, which were not within the court's purview. The respondent contended that the appellant had the opportunity for a personal hearing but did not participate, indicating a lack of interest. The respondent emphasized that the appellant did not explain the delay in filing the writ petition earlier. The Government Advocate supported the learned Judge's decision to dismiss the writ petition, granting the appellant the option to appeal to the Appellate Commissioner.

After hearing both sides, the Court noted that the appellant failed to avail the opportunity of a personal hearing granted before the assessment order was passed. The Court upheld the learned Judge's decision, directing the appellant to file a statutory appeal before the Appellate Authority within four weeks. The Court emphasized that any appeal filed should be considered on its merits within three months. The writ appeal was ultimately dismissed without costs, and the connected application was closed.