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2020 (7) TMI 228 - HC - VAT and Sales TaxPrinciples of Natural Justice - purchases made by the petitioner during the said Assessment Year on Electrical Goods (Electrical Motors And Oil Engines) from registered dealers in their States against C Forms - COVID-19 pandemic situation - petitioner contends that knowing fully well the impossibility on it s part to file objections / reply to the pre-Assessment show-cause notice, the 1st respondent had passed the impugned assessment order and the rectification order and that there has been a gross violation of principles of natural justice - HELD THAT - When there is a severe restriction imposed by the State in the nature of lockdown on account of COVID-19 pandemic it is unreasonable on the part of the 1st respondent to inform the petitioner to file a response to the show-cause notice dt.16.03.2019 served on 20.3.2020, within the period of seven (07) days. The 1st respondent ought not to have denied the petitioner reasonable time to file objections to the show-cause notice and also a personal hearing since the same was specifically sought by the petitioner in the e-mail dt.24.03.2020. The matter is remitted to the 1st respondent to pass a fresh order in accordance with law within three (03) months - Appeal allowed by way of remand.
Issues:
Challenge to Assessment Order under Telangana Tax on Entry of Goods into Local Areas Act, 2001 for Assessment Year 2013-14; Violation of principles of natural justice; Denial of opportunity of personal hearing; Rectification of tax amount imposed. Analysis: The petitioner, a registered dealer under Central Sales Tax Act and Telangana VAT Act, challenged Assessment Order No.51310 and Rectification Order A.O.No.53991 passed by the 1st respondent for the Assessment Year 2013-14 under the Telangana Tax on Entry of Goods into Local Areas Act, 2001. The petitioner received a show-cause notice proposing a tax amount on purchases made during the said year, but due to a lockdown declared by the Government, requested more time to respond. Despite the petitioner's communication, the 1st respondent passed the Assessment Order without waiting for the lockdown to be lifted, leading to allegations of violation of natural justice principles. The petitioner contended that the tax imposed was significantly higher than the proposed amount and requested rectification. The 1st respondent later rectified the tax amount, acknowledging the communication received from the petitioner regarding the lockdown situation. The petitioner argued that the 1st respondent, aware of the petitioner's inability to respond due to the lockdown, proceeded with the assessment and rectification orders, emphasizing a breach of natural justice principles. The petitioner also sought a personal hearing, citing relevant legal precedents supporting the right to such a hearing. During the proceedings, it was established that the 1st respondent had indeed received communication regarding the lockdown situation and the petitioner's difficulty in responding to the show-cause notice. The Court noted that during a lockdown due to a pandemic, it was unreasonable to expect a response within a short period and that the petitioner should have been granted more time and a personal hearing as requested. The Government Pleader did not dispute the petitioner's claims and recommended setting aside the impugned order for fresh consideration by the 1st respondent. Consequently, the Court allowed the Writ Petition, setting aside the Assessment Order and Rectification Order, and remitted the matter to the 1st respondent for a fresh decision within three months. The petitioner was granted time to file a reply with supporting documents, to be considered by the 1st respondent, who was directed to provide a personal hearing before issuing a final order. The Court emphasized the importance of adhering to principles of natural justice and ensuring a fair process in such matters. In conclusion, the Writ Petition was allowed, no costs were imposed, and any related pending petitions were closed as a result of the judgment.
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