2021 (5) TMI 367 - HC - VAT and Sales Tax

Violation of principles of natural justice - opportunity of hearing provided or not - input tax credit - HELD THAT - The Assessing Authority records specifically that the details culled out from the Departmental website on the basis of annexure I and II of the purchasing/selling dealers were furnished to the assessee/petitioner and thus the burden cast upon the Department to furnish the materials relied upon by it, stands discharged. Personal hearing is stated to have been afforded on 14.11.2016 and 13.06.2017 and on both dates the petitioner, the officer would state, did not appear and neither was there any appearance thereafter. There are no justification to interfere with the impugned orders under Article 226 of the Constitution of India. The petitioner may file appeals, if it is so inclined, before the first Appellate Authority in accordance with law within a period of two (2) weeks from today. Petition dismissed.

Summary

Issues:
Challenge to orders of assessment under Tamil Nadu Value Added Tax Act, 2006 for the periods 2010-11 to 2014-15. Compliance with principles of natural justice regarding Input Tax Credit (ITC). Justification for delay in approaching the court. Previous judgment setting aside assessment orders. Discharge of burden by the Department in furnishing materials. Right to file appeals before the first Appellate Authority.

Analysis:

The petitioner contested orders of assessment dated June 2020 under the Tamil Nadu Value Added Tax Act, 2006 for the periods 2010-11 to 2014-15. The writ petitions challenging these orders were filed in April 2021 without any explanation for the delay. The impugned orders reversed the claim of Input Tax Credit (ITC) based on materials from dealers returns, raising concerns about compliance with natural justice principles as materials relied upon were not furnished to the assessee in most cases.

In a previous case, a learned single Judge set aside the original assessment orders and directed the Assessing Authority to provide details to the petitioner, hear objections, and redo the assessment. The petitioner was requested to file objections, and the Department claimed to have furnished relevant details from the Departmental website to the petitioner. Despite a personal hearing opportunity, the petitioner did not appear, leading to a lack of justification for interference under Article 226 of the Constitution of India.

The court found no grounds to interfere with the impugned orders and directed the petitioner to file appeals before the first Appellate Authority within two weeks. This direction was based on Supreme Court judgments extending the time for filing appeals. Consequently, the Writ Petitions were dismissed, granting liberty to file appeals, and no costs were imposed. Connected Miscellaneous Petitions were also dismissed as a result of this judgment.