2018 (7) TMI 2018 - HC - VAT and Sales Tax

High Court sets aside orders, remands for fresh consideration, emphasizes due process in tax assessments

The High Court allowed the writ petitions, setting aside the impugned orders and remanding the matters to the respondent for fresh consideration. The ... Revision of Turnover - TNVAT ACt, 2006 - years 2012-13 and 2013-14 - principles of natural justice - HELD THAT:- The petitioner sought for necessary documents, based on which, the revision was proposed. However, the request of the petitioner was not considered. Furthermore, an opportunity of personal hearing was not granted. While completing the assessment, the respondent stated that the petitioner did not file copies of Annexure I, bill copies and Annexure II for verification. There was no such direction or proposal in the notices respectively dated 04.4.2018 and 12.4.2018, which referred to only Annexure II of the other end seller. The impugned orders are not only in violation of the principles of natural justice, but have ignored the request made by the petitioner for supply of necessary documents, based on which, the revision was proposed and impugned orders travelled beyond the proposal in the revision notices respectively dated 04.4.2018 and 12.4.2018 - the matters are remanded to the respondent for a fresh consideration - Petition allowed by way of remand. Issues:1. Revision of assessment under the Tamil Nadu Value Added Tax Act, 2006 for the years 2012-13 and 2013-14.2. Violation of principles of natural justice in the assessment process.3. Request for necessary documents and opportunity of personal hearing not granted.4. Interference sought due to orders going beyond the proposal in the revision notices.Analysis:The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act, 2006, challenged the revision of assessment by the respondent for the years 2012-13 and 2013-14. The respondent proposed to revise the turnover based on information from the official website regarding other end dealers. In the first case, it was claimed that a portion of the purchase turnover was not declared, while in the second case, a significant purchase amount was highlighted. The petitioner raised objections seeking necessary documents for verification, which were not provided. Additionally, no opportunity for a personal hearing was granted, and the assessment was completed without the required documents. The impugned orders were deemed to violate natural justice principles and exceed the scope of the revision notices, justifying interference.The High Court allowed the writ petitions, setting aside the impugned orders and remanding the matters to the respondent for fresh consideration. The respondent was directed to provide all relevant details supporting the proposed revisions and allow the petitioner to submit objections. A personal hearing opportunity was mandated before reassessing in compliance with the law. The court emphasized the importance of following due process and providing necessary documents to ensure a fair assessment. No costs were awarded, and the connected matters were closed, emphasizing the need for procedural fairness in tax assessments under the Act.