2008 (8) TMI 815 - HC - VAT and Sales Tax

Court quashes tax assessment orders over form defects, stresses natural justice in assessment process

Lanson Cars (P) Ltd. Versus Commercial Tax Officer, Koyambedu

Lanson Cars (P) Ltd. Versus Commercial Tax Officer, Koyambedu - [2009] 19 VST 414 (Mad) Issues:Challenging final assessment orders under the Tamil Nadu General Sales Tax Act and Central Sales Tax Act based on defective form F submissions without prior notice of defects or opportunity to rectify.Analysis:The judgment involves challenges to final assessment orders passed under the Tamil Nadu General Sales Tax Act and Central Sales Tax Act due to rejected form F submissions by the respondent, citing defects in the forms. The petitioner argued that the defects were not highlighted in the pre-assessment notice, depriving them of the opportunity to rectify the issues. Reference was made to a previous judgment where a similar situation led to the quashing of the order due to the failure to inform the assessee of the defects and provide a chance for correction. The court found a clear violation of natural justice and statutory provisions, leading to the decision to quash the assessment orders.The court directed the respondent to return the defective form F submissions to the petitioners within two weeks, allowing them to rectify the defects and resubmit the forms along with necessary documents and explanations within a further two weeks. The respondent was instructed to conduct a proper inquiry and pass final orders within four weeks independently, without influence from the court's observations. The judgment emphasized the importance of affording fair opportunities to rectify defects in form submissions and upheld the principles of natural justice in assessment proceedings.