2022 (5) TMI 72 - HC - VAT and Sales Tax

Validity of Assessment order - only two days time were granted to produce the original verification letters - petitioner failed to produce the verification letters - grant of opportunity to produce the verification letters as directed in appellate order - HELD THAT - The interest of justice warrants petitioner be granted a breathing time to produce the original of the verification letters, especially since the petitioner submits that said letters are now available with him. If the original verification letters are available with the petitioner, there is no reason why an opportunity should not be granted, though stricto sensu the circumstance may not warrant such an indulgence to be shown. Since the strict adherence to time may not have been possible due to Covid-19 regulations, a lenient view can be adopted to render justice to the assessee, without causing serious prejudice to the revenue. Ext.P4 order dated 25.10.2021 is liable to be set aside, granting liberty to the petitioner to produce the original verification letters, directed to be produced in Ext.P2 order of the appellate authority, on 28.02.2022 at 11 a.m., before the 1st respondent - petition allowed.

Summary

Issues:
1. Quashing of assessment order (Ext.P4) under the Central Sales Tax Act, 1956.
2. Opportunity to produce original verification letters as directed in Ext.P2 appellate order.
3. Granting of time for producing verification letters.
4. Consideration of circumstances due to Covid-19 regulations.

Analysis:
1. The petitioner, an assessee under the Central Sales Tax Act, challenged the rejection of C-Forms for the assessment year 2015-2016 in Ext.P4 assessment order. The petitioner appealed, and Ext.P2 directed the production of original verification letters. Despite a request for 20 days, the assessing officer granted only two days, leading to the revival of the original assessment in the impugned order dated 25.10.2021. The petitioner sought to quash Ext.P4.

2. The petitioner's counsel argued for the granting of 20 days, emphasizing the avoidance of an inequitable assessment. It was stated that the original verification letters were with the authorized representative and could be produced if a specific date was fixed. The Government Pleader contended that the petitioner was given two days as per Ext.P4 and failure led to the revival of the assessment order.

3. The Court acknowledged the petitioner's submission regarding the availability of the verification letters and the need for justice. Considering the impact of Covid-19 regulations on strict timelines, leniency was advised to prevent prejudice to the assessee. Consequently, Ext.P4 dated 25.10.2021 was set aside, granting the petitioner until 28.02.2022 to produce the original verification letters.

4. The judgment allowed the petitioner time to comply and directed the assessing authority to proceed in accordance with the law if the verification letters were not produced by the specified date. The decision aimed to balance justice for the assessee with the revenue's interests, considering the exceptional circumstances due to the pandemic.