2019 (6) TMI 1271 - HC - VAT and Sales Tax

Principles of natural justice - validity of assessment order - the objections of the writ petitioner have been rejected summarily in one sentence without giving any reason as to why and how the objections are rejected - HELD THAT - This Court has also put in a clear caveat and directed the authorities, not to be solely guided by the proposals submitted by the inspecting authorities. Notwithstanding the above obtaining position, a perusal of the impugned order reveals that the Assessing authority i.e., sole respondent has merely gone by the proposal given by the Enforcement Wing of the department. With regard to the detailed objections of the writ petitioner, in a cryptic manner, the Assessing authority has rejected the same without giving any reason as to why and how the same are rejected. The respondent should necessarily make an assessment independent of the proposal given by the Enforcement Wing of the department has been laid down by this Hon'ble Court in NARASUS ROLLER FLOUR MILLS VERSUS THE COMMERCIAL TAX OFFICER 2015 (4) TMI 361 - MADRAS HIGH COURT - there is no disputation that ' Narasus Sarathy Enterprises Private Limited case' principle is now governing the field. Impugned assessment order set aside - Respondent is directed to assess afresh, after giving a personal hearing to the petitioner's duly authorized representative and after giving opportunity to the petitioner to file requisite records and documents - petition allowed by way of remand.

Summary

Issues:
Assessment order challenged on grounds of summary rejection of objections and lack of independent assessment.

Analysis:
The petitioner, a manufacturer of automobile parts registered under the TNVAT Act, challenged the assessment order for the 2010-2011 assessment year. The assessment was based on proposals from the Enforcement Wing without an independent assessment by the respondent. The petitioner's objections were summarily rejected without reasons, contrary to the legal requirement for an independent assessment. The petitioner cited the "Narasus Roller" judgment, emphasizing the need for independent assessment by the assessing officer. This principle was derived from the "Madras Granites Case" and upheld by a Hon'ble Single Judge in a previous judgment.

The "Narasus Roller" judgment highlighted the assessing officer's quasi-judicial power and the requirement to independently assess, not solely rely on proposals. The court set aside the impugned orders and directed a fresh assessment, emphasizing the need for the assessing authority to conduct an independent assessment, giving due consideration to the petitioner's objections. The court's directive was clear - the respondent must assess afresh, granting a personal hearing, and not solely rely on proposals from the Enforcement Wing.

The legal position established by the "Narasus Sarathy Enterprises Private Limited case" was undisputed by the Revenue counsel, indicating the governing principle in such cases. The court, in light of the legal precedents and principles, set aside the assessment order, directing a fresh assessment within eight weeks, independent of the Enforcement Wing's proposals. The judgment emphasized the importance of a fair and independent assessment process, ensuring procedural fairness and adherence to legal principles.

In conclusion, the court allowed the writ petition, setting aside the assessment order and directing a fresh assessment in compliance with the legal principles outlined in the "Narasus Roller" judgment. The judgment served as a reminder of the assessing officer's duty to conduct an independent assessment, affording the petitioner a fair opportunity to present their case and submit relevant documents.