2017 (12) TMI 1427 - HC - VAT and Sales Tax

Principles of natural justice - It is the case of the petitioners that it is only when the second petitioner received the notice of demand dated 15.11.2017 together with the earlier notices that the petitioners came to know about the impugned orders having been passed and the demand raised by the third respondent on behalf of the respondent State authorities - Held that - the matter could not be proceeded before the assessing authority, the court is of the view that it would be in the interest of justice if the ex parte orders dated 30.8.2013 and 30.9.2013 are quashed and set aside and the matter is remanded to the assessing authority to decide the same afresh after affording the petitioners an opportunity of hearing as well as producing necessary documents in support of their case - petition allowed by way of remand.

Summary

Issues involved:
Challenge to demand notices and orders issued by Tahsildar and Assistant Commercial Tax Commissioner regarding outstanding tax dues for specific years.

Analysis:
- The petitioners challenged demand notices and orders issued by the Tahsildar and Assistant Commercial Tax Commissioner regarding outstanding tax dues for specific years.
- The petitioners had a factory engaged in manufacturing and selling mixer grinders, which was closed in 2006, leading to applications for cancellation of registration under tax laws.
- Disputes arose regarding tax dues for the years 2003-04, 2004-05, and 2005-06, with the Tribunal remanding the matter for fresh assessment due to lack of hearing opportunity.
- The petitioners' advocate, suffering from cancer, was unable to properly represent them, resulting in ex parte orders by the Assistant Commercial Tax Commissioner.
- The petitioners were unaware of the status of proceedings, leading to the challenge of demand notices and orders.
- The petitioners sought quashing of the impugned orders, arguing that the tax liability could be reduced with the availability of necessary 'C' forms.
- The Assistant Government Pleader acknowledged the paid dues for 2003-04 and 2004-05 but highlighted outstanding dues for 2005-06.
- The court noted the outstanding dues for 2005-06 and the need for a fresh assessment with proper hearing and document submission.
- Considering the circumstances, the court quashed the ex parte orders and remanded the matter for a fresh decision by the assessing authority with an opportunity for the petitioners to present their case.

This detailed analysis covers the issues involved in the legal judgment, highlighting the challenges faced by the petitioners regarding tax dues and the subsequent court decision to quash the impugned orders and provide an opportunity for a fresh assessment.