2023 (7) TMI 1170 - HC - VAT and Sales Tax

Principles of natural justice - No personal hearing was afforded to the Petitioner before passing the impugned assessment order - 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 12.09.2022 passed by the Respondent are hereby quashed and the matters are remanded back to the Respondent for fresh consideration. The Respondent shall pass final orders in accordance with law after granting reasonable opportunity of personal hearing to the Petitioner - Petition disposed off.

Summary

Issues Involved:
The judgment deals with the quashing of an impugned assessment order passed by the Respondent, based on the challenge to the validity of an amendment made by the Tamil Nadu Government to the Value Added Tax Act.

Issue 1: Lack of Personal Hearing and Violation of Principles of Natural Justice
The Petitioner contended that no personal hearing was provided before the assessment order was passed. It was argued that in light of pending challenges to the amendment by the Tamil Nadu Government, the Respondent should have awaited the Supreme Court's decision. Reference was made to a previous court order directing the Assessing Officer to revoke the assessment after granting an opportunity for the Petitioner to present their case on merits. The Court found that the Petitioner was not afforded the right of personal hearing and no explanation was given on merits, leading to a violation of natural justice principles. Consequently, the impugned assessment order was quashed, and the matter was remanded back to the Respondent for fresh consideration, with directions to provide a reasonable opportunity for a personal hearing and to allow the Petitioner to raise all objections available under the law.

Issue 2: Quashing of Assessment Order and Remand for Fresh Consideration
In accordance with a previous court order that applied to the case, the impugned assessment order was quashed. The matters were remanded back to the Respondent for fresh consideration, with instructions to pass final orders in compliance with the law after granting a reasonable opportunity for a personal hearing to the Petitioner. The Petitioner was also permitted to raise all objections available under the law, and the Respondent was directed to issue the final order within three weeks from the receipt of the court's order.

In conclusion, the judgment addressed the issues of lack of personal hearing, violation of natural justice principles, and the quashing of the assessment order based on the challenge to the validity of the amendment made by the Tamil Nadu Government to the Value Added Tax Act. The Court remanded the matters back to the Respondent for fresh consideration, emphasizing the importance of providing a reasonable opportunity for a personal hearing and allowing the Petitioner to raise all objections available under the law.