2023 (7) TMI 940 - HC - VAT and Sales Tax

Violation of Natural Justice - no personal hearing afforded to the Petitioner before passing the impugned assessment order - Validity of G.O.Ms.No.47/27.03.2012 with effect from 01.04.2012 - amendment made to Entries 1 and 2 of Second Schedule to the Tamil Nadu Value Added Tax Act, 2006 - HELD THAT - The Petitioner was not granted any opportunity to put forth their submission on merits. It was submitted that under similar circumstances, this Court was pleased to direct the Assessing Officer to revoke the assessment after granting an opportunity to the Petitioner to put forth their submission on merits. The impugned assessment order, dated 03.06.2022 passed by the Respondent are hereby quashed and the matters are remanded back to the Respondent for fresh consideration - Petition allowed by way of remand.

Summary

Issues involved:
The issues involved in this case include the quashing of an impugned order passed by the Respondent, the lack of personal hearing before the assessment order, the challenge to the validity of an amendment made by the Government of Tamil Nadu, and the violation of principles of natural justice.

Impugned Order Quashing:
The writ petitions were filed to quash the impugned order dated 03.06.2022 passed by the Respondent in Asst.No.33636721775/2018-2019, 2019-2020, and 2020-2021. The Petitioner objected to the assessment order citing the introduction of G.O.Ms.No.47/27.03.2012 by the Tamil Nadu Government, amending Entries 1 and 2 of the Second Schedule to the Tamil Nadu Value Added Tax Act, 2006. The challenge to this amendment was rejected by the Division Bench of the Court, and the matter was pending consideration before the Supreme Court. The outcome of the pending Appeals was deemed to have a direct impact on the present assessment.

Lack of Personal Hearing:
The Petitioner contended that no personal hearing was provided before the impugned assessment order was passed. They argued that in light of pending Special Leave Petitions challenging the validity of the Tamil Nadu Government's amendment, the Respondent should have awaited resolution by the Supreme Court. The Petitioner was not granted an opportunity to present their case on merits. Citing a previous Court order, the Petitioner emphasized the importance of affording the right of personal hearing and allowing the raising of objections under the law.

Violation of Natural Justice:
The Respondent did not provide the Petitioner with a personal hearing as required. The Petitioner's reply did not contain a detailed explanation on merits but highlighted the pending Special Leave Petitions challenging the amendment. This lack of opportunity to present objections and the violation of principles of natural justice were raised by the Petitioner. The Court found that the Respondent had indeed violated the principles of natural justice and directed the assessment order to be quashed, remanding the matter back for fresh consideration.

Court's Decision:
In line with the previous Court order and the principles of natural justice, the High Court quashed the impugned assessment order dated 03.06.2022 and remanded the matters back to the Respondent for fresh consideration. The Respondent was instructed to pass final orders after granting a reasonable opportunity for a personal hearing to the Petitioner. The Petitioner was also allowed to raise all objections available under the law, with the Respondent required to finalize the orders within three weeks from the receipt of the Court's order.

Conclusion:
The Writ Petitions were disposed of with the direction for the Respondent to reconsider the assessment orders, ensuring the Petitioner's right to a personal hearing and the opportunity to raise objections. No costs were awarded, and the connected Miscellaneous Petitions were closed.