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of <h1>Court grants appellant fresh assessment opportunity, emphasizing due process.</h1> <h3>G.V. Cotton Mills (P) Ltd. Versus The Assistant Commissioner (CT) Avarayampalayam Assessment Circle, Coimbatore</h3> G.V. Cotton Mills (P) Ltd. Versus The Assistant Commissioner (CT) Avarayampalayam Assessment Circle, Coimbatore - [2019] 60 G S.T.R. 418 (Mad) Issues:1. Availability of alternative remedy for challenging assessment orders.2. Validity of ex parte assessment.3. Denial of opportunity of personal hearing to the appellant.Issue 1 - Availability of alternative remedy for challenging assessment orders:The appellant, a manufacturer and trader of cotton yarn and waste cotton, had their assessments completed based on returns submitted. Subsequently, incriminating materials were found during an inspection by Enforcement Wing officials, leading to a conclusion that the appellant did not reverse credit on ITC claim for exempted sale and consignment basis. The Enforcement Wing issued notices for the appellant to show cause, and the respondent completed the assessment ex parte after the appellant's explanation. The single Judge dismissed the writ petitions citing the availability of an alternative remedy. The core question was whether the respondent was justified in resorting to ex parte assessment despite the appellant's explanations to the Enforcement Wing.Issue 2 - Validity of ex parte assessment:The respondent initiated action based on the Enforcement Wing's report and incriminating documents but overlooked the appellant's explanations. The appellant had submitted objections to the notices, which were not considered before the ex parte assessment was passed. The failure to consider the objections and explanations vitiated the assessment orders. The respondent's denial of a personal hearing solely based on the lack of objections to pre-assessment notices was deemed improper. The Assessment Officer was expected to provide a hearing opportunity even without specific objections, as observed in relevant case law.Issue 3 - Denial of opportunity of personal hearing to the appellant:Upon highlighting the legal infirmity in the assessment procedure, the Assessment Officer agreed to withdraw the assessment order and reconsider the matter after providing a reasonable opportunity to the appellant. The appellant was granted time to respond to the pre-assessment notices and assured a personal hearing opportunity. The court directed the premises to be de-sealed and accounts to be de-frozen for the appellant to submit explanations and documents.In conclusion, the intra court appeals were allowed, and the assessment orders were recalled for fresh consideration by the respondent. The appellant was given a chance to provide a comprehensive reply and attend a personal hearing, emphasizing the importance of due process and fair opportunity in tax assessments.
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