2021 (7) TMI 585 - HC - VAT and Sales Tax

Validity of assessment order - validity of rejecting original H declaration forms after completion of the assessment order for the assessment year 2015-16 - copy of the assessment order, which was said to be sent by registered post could not be received on account of ongoing pandemic lockdown situation - violation of principles of natural justice - HELD THAT - Admittedly, the date of assessment order is 30.03.2020 and the said date falls within the covid lockdown period. Therefore, there are force in the submission of learned counsel for petitioner that having regard to the lockdown imposed by the Central Government, he was operating from his Chennai office and not at Guntur office. At any rate, having regard to the submission of the petitioner that he is ready to produce forms F H to the satisfaction of the authorities, we deem it fit to grant an opportunity by following principles of natural justice. The impugned assessment order is set aside - the 1st respondent is directed to afford an opportunity of hearing to the petitioner and to submit the relevant documents and consider the same and pass an appropriate order in accordance with the governing law - Petition allowed.

Summary

Issues:
Challenge to assessment order dated 30.03.2020 in TIN No.378681284678/2015-16 (CST) based on rejection of 'H' declaration forms, legality, arbitrariness, and principles of natural justice.

Analysis:
The petitioner, a partnership firm engaged in the export business, challenged the assessment order for the year 2015-16, claiming non-receipt of the order due to operational changes amid the COVID-19 lockdown. The petitioner argued that the tax liability was determined due to non-submission of 'H' and 'F' declaration forms, which were later submitted upon learning of the assessment order. The respondent contended that a notice was sent but returned unserved, leading to the assessment order. The court acknowledged the lockdown circumstances and granted an opportunity for the petitioner to present the forms, emphasizing adherence to natural justice principles.

The main contention revolved around the petitioner's inability to receive the assessment order during the COVID-19 lockdown period, as operations had shifted from Guntur to Chennai. The petitioner sought to rectify the situation by submitting the required forms post-assessment, which was rejected by the respondent. The court recognized the challenges faced by the petitioner and ordered a fresh hearing to allow submission of relevant documents, ensuring compliance with legal provisions and expeditious decision-making.

The court's decision to set aside the assessment order was based on the petitioner's genuine difficulties in receiving the order amidst the pandemic-related operational changes. By emphasizing the importance of natural justice and granting an opportunity to rectify the submission of forms 'H' and 'F', the court aimed to ensure a fair assessment process in line with statutory requirements. The judgment underscored the need for flexibility and understanding in exceptional circumstances, safeguarding the petitioner's rights and upholding principles of fairness and procedural justice.