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of <h1>Court sets aside assessment order under TNVAT Act for AY 2007-08 due to lack of personal hearing</h1> <h3>M/s. The Indian Hume Pipe Co. Ltd Versus The Assistant Commissioner (CT),</h3> The Court set aside the assessment order under the TNVAT Act for AY 2007-08, citing a violation of natural justice principles due to the lack of a ... Principles of natural justice - Different authorities - Revision u/s 27(3) of the TNVAT Act by levying tax in addition to the output tax already declared in the monthly returns, and imposed penalty - works contract - the interstate movement of goods from other States to Tamil Nadu was occasioned by the work order placed by TWAD Board on the petitioner. - Held that:- It is an admitted position that the notice was issued by one personnel and after hearing the impugned assessment order was passed by another personnel. In such circumstances, before passing the impugned order, the petitioner ought to have been given a personal hearing by the respondent as contemplated under section 22(4) of the TNVAT Act, 2006. Therefore, on this ground of violation of principles of natural justice, I am inclined to set aside the impugned assessment order and accordingly, the same is set aside and the Writ Petition is allowed - Matter remanded back. Issues:Challenge to assessment order under TNVAT Act for AY 2007-08.Analysis:The Writ Petition challenges an assessment order dated 31.03.2015 under the TNVAT Act for the Assessment Year 2007-08. The petitioner, a registered Company under the Indian Companies Act, engaged in works contracts for TWAD Board, Chennai, and turnkey projects. The assessment revised under section 27(3) of the TNVAT Act levied additional tax and penalty. The petitioner contended that the assessment was based on all incomes in the balance sheet, including from other states, contrary to TNVAT Act provisions. The enforcement officers' defects were repeated in the revision notice, leading to the impugned order after a delay of two years from the notice issuance.The petitioner argued that after filing objections and detailed replies, the reassessment proceedings were dropped, leading to a violation of natural justice principles. The assessment order was passed by a different personnel from the one who issued the notice, without granting a personal hearing. The petitioner provided evidence to substantiate their claims, including photographs, certificates, and invoices related to specific projects. The Senior Counsel contended that tax should only be levied on sales in Tamil Nadu, not on all company branches' incomes. The failure to consider Tamil Nadu sales figures separately was highlighted as an error in the assessment.The Court found a violation of natural justice principles due to the lack of a personal hearing before passing the assessment order. Citing section 22(4) of the TNVAT Act, the Court set aside the assessment order and remanded the matter to the respondent for fresh hearing from the petitioner. Emphasizing the need for a personal hearing, the Court directed the respondent to pass appropriate orders in line with the law after the new hearing. The Writ Petition was allowed, with no costs awarded, and the connected Miscellaneous Petition was closed.
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