Court Quashes Order for Unfair Tax Assessment, Orders Response

The court found the respondent's actions in passing the order without allowing the petitioner to reply or have a hearing as untenable and quashed the order assessing tax due and levying interest. The court directed the petitioner to file a reply within two weeks, and if complied, the respondent was to issue fresh orders. The writ petition was disposed of with these directions, instructing the petitioner to provide copies of the judgment and petition to the respondent for compliance.

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Issues:
1. Validity of notice issued under Section 25(1) of the KVAT Act for reopening assessment for the year 2010-2011.
2. Challenge to the order assessing tax due and levying interest without allowing the petitioner to submit a reply or have a hearing.
3. Direction for the petitioner to file a reply to the notice within two weeks for fresh orders by the respondent.

Analysis:
1. The petitioner received a notice under Section 25(1) of the KVAT Act to reopen the assessment for the year 2010-2011. In response, the petitioner submitted a request for time to reply until a decision was made by the Government on the issue of discount. However, the assessment was completed without allowing the petitioner an opportunity to file a reply or a hearing. The court found the action of the respondent in passing the order without communication or opportunity for the petitioner as untenable and quashed the order.

2. The court emphasized that if the petitioner's request was impermissible, the respondent should have communicated the rejection to the petitioner. Since the request was received on 30.11.2012 and the assessment was completed on 1.12.2012, there was no opportunity for communication of rejection. The court held that the order assessing tax due and levying interest without affording the petitioner a chance to respond was not valid and quashed the order.

3. The court directed the petitioner to file a reply to the notice within two weeks from the judgment date. It further ordered that if the petitioner complies with filing the reply, the respondent should pass fresh orders in the matter. The writ petition was disposed of with this direction, and the petitioner was instructed to provide a copy of the judgment and the writ petition to the respondent for compliance with the court's orders.

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