2017 (10) TMI 1361 - HC - VAT and Sales Tax

Court sets aside VAT assessment orders for 2014-2016 due to natural justice violation

The High Court allowed the Writ Petitions challenging assessment orders under the Tamil Nadu Value Added Tax Act for 2014-2015 and 2015-2016. The Court ... Validity of assessment order - main ground on which the impugned orders have been challenged is on the ground that it violates the principles of natural justice - Held that:- Since the impugned assessment orders have been passed based on mismatch, as culled out from the official website and on the alleged ground that the petitioner has effected purchases from registration certificate cancelled dealers, this is a case where the respondent should have furnished all details and given the assessee, adequate opportunity to file their objections - this Court is satisfied that the impugned assessment orders are in violation of principles of natural justice. The matter is remanded to the respondent for fresh consideration - petition allowed by way of remand. Issues:1. Challenge to assessment orders for the years 2014-2015 and 2015-2016 under the Tamil Nadu Value Added Tax Act, 2006.2. Violation of principles of natural justice in passing the impugned assessment orders.Analysis:The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act, 2006, contested the assessment orders for 2014-2015 and 2015-2016, primarily alleging a breach of natural justice principles. Despite requesting an adjournment in response to prerevision notices, the impugned assessment orders were issued without considering the petitioner's representation regarding the objections to the notices. The petitioner argued that the orders were passed without providing an opportunity to present objections, thus violating natural justice.The learned Government Advocate representing the respondent acknowledged that the Assessing Officer had indeed received the petitioner's letter requesting an adjournment on 12.06.2017. However, due to a transfer, the assessments were finalized without considering this communication. The assessment orders were based on alleged mismatches from the official website and claims that the petitioner had dealings with dealers whose registration certificates were canceled. The Court agreed that the respondent should have provided all relevant details to the petitioner and allowed them a fair chance to raise objections before finalizing the assessments.Consequently, the High Court allowed the Writ Petitions, setting aside the impugned orders and remanding the matter back to the respondent for fresh consideration. The respondent was directed to furnish all relevant details supporting the proposed revision of assessment within 15 days. Subsequently, the petitioner was instructed to submit their objections within 15 days of receiving the details. The respondent was then required to schedule a specific date for a personal hearing with the petitioner or their representative to conduct a reassessment in compliance with the law. No costs were awarded in the judgment, and all related miscellaneous petitions were closed as a result of the decision.