Court sets aside tax assessment orders, emphasizes fair hearing & remits matter back for fresh disposal

The Court allowed the writ petitions, setting aside the impugned orders of the Commercial Tax Officer for tax assessment years 2014-2015 and 2015-2016 under the TNVAT Act. The Court remitted the matter back to the respondent for fresh disposal within two months, emphasizing the need to consider the petitioner's objections and provide a fair hearing. The impugned orders were deemed non-speaking and lacking proper justification, leading to their setting aside. No costs were awarded, and the connected miscellaneous petitions were closed.

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Issues:
Challenging impugned orders of Commercial Tax Officer for tax assessment years 2014-2015 and 2015-2016 under TNVAT Act on grounds of sales suppression, penalty imposition, and violation of natural justice principles.

Analysis:
The petitioner, a dealer in readymade garments and textiles, challenged assessment orders for 2014-2015 and 2015-2016 due to discrepancies found during an inspection by Enforcement Wing officers. The officers alleged sales suppressions without proper verification and opportunity for the petitioner to explain discrepancies, leading to proposed tax and penalty levies. The respondent confirmed these proposals without considering the petitioner's detailed objections, violating principles of quasi-judicial conduct and natural justice.

The respondent argued that the petitioner's objections were not acceptable as the petitioner had allegedly admitted facts before the Enforcement Wing officers during verification. However, the Court found this argument insufficient, emphasizing the duty of assessing officers to address objections in detail as per legal precedents. The Court held that the impugned orders were non-speaking, lacking proper justification, and set them aside, remitting the matter back to the respondent for fresh disposal within two months while emphasizing the need to consider the petitioner's objections and provide a fair hearing.

In conclusion, the Court allowed the writ petitions, setting aside the impugned orders, and directed the respondent to re-examine the matter with due consideration to the petitioner's objections and principles of natural justice. No costs were awarded, and the connected miscellaneous petitions were closed.

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