2023 (3) TMI 794 - HC - VAT and Sales Tax

Violation of principles of natural justice - personal hearing was granted to the petitioner only on 18.02.2020 and not on 16.02.2020 as reflected in the impugned assessment orders - No fresh notice was also issued to the petitioner by the respondent, intimating a fresh date of personal hearing - HELD THAT - Since the personal hearing has not been afforded to the petitioner, it is clear that principles of natural justice has been violated by the respondent. Hence, the impugned assessment orders have to be quashed and the matters will have to be remanded back to the respondent for fresh consideration on merits and in accordance with law. This Court deems it fit to fix the next date of personal hearing of the petitioner before the respondent as 14.03.2023 and on that date the petitioner shall appear before the respondent at 10 30 a.m. without fail - the impugned assessment orders dated 29.04.2021 and 27.04.2021 passed by the respondent are hereby quashed and the matters are remanded back to the respondent for fresh consideration on merits and in accordance with law - Petition disposed by way of remand.

Summary

Issues:
Challenge to assessment orders for violation of natural justice principles and imposition of penalties under TNVAT Act, 2006.

Analysis:
The petitioner contested the assessment orders dated 29.04.2021 and 27.04.2021 for the assessment years 2011-12 to 2015-16, citing a breach of natural justice principles. Penalties were imposed under the TNVAT Act, 2006. The notice for personal hearing issued on 02.02.2021 mentioned 18.02.2020 as the date, but the assessment orders stated 16.02.2020. The petitioner appeared for the hearing on 18.02.2020, seeking more time to respond. However, the orders reflected the hearing on 16.02.2020, and no fresh notice was sent for rescheduling. As a result, the respondent proceeded with the orders without granting a proper hearing to the petitioner, leading to a violation of natural justice principles.

The court acknowledged the discrepancy in the hearing dates and the lack of a fair opportunity for the petitioner to contest the penalties. Consequently, the assessment orders were quashed, and the matters were remanded to the respondent for a fresh review in compliance with the law. A new hearing date of 14.03.2023 at 10:30 a.m. was set for the petitioner to appear before the respondent without any adjournment requests. The respondent was directed to issue final orders within twelve weeks from the new hearing date, ensuring adherence to natural justice principles.

In conclusion, the writ petitions were disposed of with no costs, and the connected miscellaneous petitions were closed. The judgment emphasized the importance of upholding natural justice principles in administrative proceedings and ensuring a fair opportunity for affected parties to present their case before decisions are made.