2018 (8) TMI 157 - HC - VAT and Sales Tax

Revision of Assessment - TNVAT Act - petitioner is of an opinion that for each assessment year, separate proceedings are to be issued by the competent authority, contrarily, a common order has been passed by the competent authority namely, the Assistant Commissioner(ST) in respect of six assessment years - Held that - This Court is of an opinion that passing of separate orders in respect of each assessment year may be a mere technical objection. However, it may be convenient for the writ petitioner to prefer an appeal, if separate orders are passed. Therefore, it is preferable that the authorities competent shall pass separate orders in respect of each assessment year, so that the aggrieved person can prefer an appeal for each assessment year without any delay. This Court is of an opinion that the writ petitioner has to make such an application seeking personal hearing and in the event of submitting such an application, the authorities competent are bound to provide an opportunity of personal hearing for submitting the defence or otherwise - this Court is of an opinion that it is a fit case for remittance. Matter remitted - Petition allowed.

Summary

Issues:
Challenge to order under Section 22(4) of TNVAT Act for revision of assessment - Separate proceedings and appeals for each assessment year - Interpretation of "being heard" in Section 22(4) - Requirement of personal hearing before passing order.

Analysis:
The petitioner challenged an order under Section 22(4) of the TNVAT Act, arguing that separate orders should be issued for each assessment year and a personal hearing should have been granted before passing the impugned order. The petitioner contended that the absence of a personal hearing rendered the order invalid.

The petitioner's counsel argued that separate orders for each assessment year are necessary to facilitate appeals and that the term "being heard" in Section 22(4) mandates a personal hearing. The respondent's counsel opposed, stating that the details for each year were separately mentioned in the order, making separate orders redundant.

The court opined that while separate orders may be a technicality, they would aid in the appeal process. It was deemed preferable for the competent authorities to issue separate orders for each assessment year to enable timely appeals. The court also emphasized the importance of providing a personal hearing as required by Section 22(4) of the TNVAT Act.

The court directed the petitioner to submit an application for personal hearing along with explanations and documents within a week. Upon receipt, the authorities were instructed to grant a personal hearing within a week and pass final orders within two weeks. The impugned order was quashed, and the writ petition was allowed, without costs.

In conclusion, the court highlighted the necessity of separate orders for each assessment year for effective appeals and stressed the requirement of a personal hearing as per Section 22(4) of the TNVAT Act. The judgment emphasized the importance of procedural fairness and compliance with statutory provisions in tax assessment matters.