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TMI Blog2016 (8) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of him proceeding further in the matter and issuing notices of default assessments of tax, interest and penalty in the manner that he has done. Thirdly, in an obvious violation of the principles of natural justice, with the AVATO by not informing the Petitioner of the adjourned date of hearing when he failed to attend office on 5th July 2016, which was the date fixed. took up the matters in his chamber on 9th July 2016 which, being a second Saturday, was a holiday and then reserved the matter for orders on 12th July 2016. The notices of default assessment of tax and interest and penalty are undoubtedly in violation of the principles of natural justice and patently illegal. The Court does not consider it necessary to do say anything more to demonstrate the patent illegality attached to the actions of the AVATO, triggered as they were by the order dated 3rd June 2016 passed by this Court. The Court, therefore, has no hesitation in setting aside the notices of default assessment of tax and interest and penalty dated 12th July 2016 issued by the AVATO Further refund shall be allowed with interest. - Decided in favor of assessee and against the revenue. - W.P.(C) 6746/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Narayan, learned Additional Standing Counsel for the Respondent that the Petitioner s application will be examined and necessary orders would be passed and the admissible amount of refund together with interest will be released before the next date of hearing . The case was then directed to be listed on 19th July, 2016. The Court did not assemble on that date and the petition was adjourned for today. 7. The above order became necessary as there was an obvious failure by the Respondent to grant refund due to the Petitioner for the fourth quarter of 2013-14 together with interest due thereon in terms of Section 38 of the DVAT Act. The Court has, in numerous judgments delivered on the issue, emphasized that while it is open to the DT T to take appropriate action to recover what it perceives to be turnover that may have escaped assessment, such action cannot result in postponement of the refund beyond the mandatory time frame set out under Section 38 of the DVAT Act. The legal position has been summarized by this Court in its recent order dated 28th July 2016 in WP (C) No. 6013/2016 (Prime Papers and Packers vs. Commissioner of VAT) where the Court has discussed the earlier de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is a clear breach of the statutory duties. The collective failure of such officers is imposing a huge interest burden on the exchequer which is clearly avoidable. 9. Reverting to the case on hand, it appears that instead of processing the Petitioner s refund due for the fourth quarter of 2013-14, five notices were issued under Section 59(2) of the DVAT Act by the Assistant Value Added Tax Officer ( AVATO ), Ward-64 on 8th June, 2016 requiring the Petitioner to produce documents pertaining to the period 1st April 2012 to 31st March 2013, 1st April 2013 to 31st March 2014, 1st April 2014 to 31st March 2015, 1st April 2015 to 31st March 2016, 1st April 2016 to 27th May 2016 and directing the Petitioner to attend the office of the AVATO on 16th June 2016 at 11 am. On 14th June 2016 another set of notices were issued under Section 59(2) of the DVAT Act for the same period as the notices dated 8th June 2016, directing the Petitioner to attend the office of the AVATO on 22nd June, 2016 at 11 am. 10. In the meanwhile, the Petitioner had requested the Enforcement Branch of the DT T to hand over to it the documents, papers book etc. which were taken from its premises during the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther. It seems that M/s Teleworld Mobiles Pvt. Ltd. has nothing to say on the discrepancies mentioned on available records. However, if the dealer want to say anything more, last opportunity is allowed to submit the same by 05.7.2016, before keeping the case for orders. Accordingly notice issued. 15. What transpired next is not in dispute. The Petitioner did go to the office of the AVATO on 5th July 2016 with two written replies in its possession. The AVATO was on leave on 5th July 2016. Therefore, no hearing could take place on that date. What transpired thereafter is, to say the least, inexplicable. The AVATO decided to take up the matter sitting in chambers on Saturday 9th July 2016, which was an official holiday, without issuing any further notice to the Petitioner. ON that day, he simply reserved the matter for orders. This conduct of the AVATO is not understandable. 16. The AVATO s failure to inform the Petitioner that he was going to take up the matter on 9th July 2016 is simply unacceptable from the point of a statutory authority exercising judicial powers. The AVATO then proceeded on 12th July 2016 to pass the notices of default assessment of tax and interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principles of natural justice and patently illegal. 21. The Court does not consider it necessary to do say anything more to demonstrate the patent illegality attached to the actions of the AVATO, triggered as they were by the order dated 3rd June 2016 passed by this Court. The Court, therefore, has no hesitation in setting aside the notices of default assessment of tax and interest and penalty dated 12th July 2016 issued by the AVATO which are the subject matter of challenge in WP (C) Nos. 6746/2016 and 6747/2016. 22. The matter, however, cannot end there. The Court is concerned about the conduct of the several officials of the DT T, who seem to be acting not only in contravention of the various provisions of the DVAT Act, but also in wilful disobedience of the law explained by this Court in several of its decisions. Although, circulars and orders may have been issued by the Commissioner VAT from time to time, they appear to have no impact on the behaviour of the officials of the DT T. On a daily basis, this Court has been faced with several petitions where instances of blatant and wilful disobedience of the statutory provisions by the officials of the DT T have come to li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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