2016 (10) TMI 330 - HC - VAT and Sales Tax

Validity of the order of assessment made by enforcement wing officials - notice issued to petitioner on the basis of field audit report to revise the turnover for the relevant years - due to ill health the petitioner did not submit his reply and he enclosed a medical certificate issued by the Orthopaedic Surgeon stating that he was advised complete bed rest from 05.04.2016 to 30.06.2016 and prayed for opportunity of being heard - whether the appellant be granted the opportunity of being heard? - Held that - the petitioner afforded an opportunity to put forth his objections, subject to certain conditions. The petitioner directed to pay 15% of the tax demanded for both the assessment years within a period of three weeks and treat the impugned assessment orders as show cause notices and at liberty to file his objections. In the event, the petitioner does not comply with the conditions of payment of 15% of the tax demanded for both the assessment years within the three weeks period stipulated by the Court, the benefit of the order will not enure to the petitioner and the writ petition will be dismissed automatically. However, it is open to the petitioner to invoke the appellate remedy provided under the Act, as against the impugned orders of assessment. Petition disposed off - decided in favor of petitioner.

Summary

Issues:
Challenge to assessment orders for the years 2013-14 and 2014-15 based on field audit report; Request for an opportunity to submit objections; Direction to pay 15% of tax demanded for both assessment years; Affording opportunity for objections and personal hearing; Consequences of non-compliance with payment condition; Right to invoke appellate remedy against assessment orders.

Analysis:
The petitioner, a registered dealer under the TNVAT Act, challenged assessment orders for 2013-14 and 2014-15 based on a field audit report. The petitioner's father was present during the audit, and the enforcement officials recorded his statement and collected a compounding fee. Notices proposing to revise the turnover were issued, but the petitioner, due to ill health, did not reply, submitting a medical certificate for the period of advised bed rest. The petitioner sought an opportunity to present objections to the assessment orders.

The Court, considering the circumstances, directed the petitioner to pay 15% of the tax demanded for both years within three weeks. Upon payment, the assessment orders would be treated as show cause notices, allowing the petitioner to file objections. Failure to comply within the stipulated period would result in dismissal of the writ petition. The respondent was instructed to consider objections, provide a personal hearing, and proceed with assessment in accordance with the law upon compliance.

The judgment clarified that until the respondent passed orders in line with the Court's direction, the demand in the assessment orders would not be enforced. The petitioner was also reminded of the option to utilize the appellate remedy available under the Act against the impugned assessment orders. The Court disposed of the writ petitions with the specified directions, closing connected miscellaneous petitions without costs.