2018 (6) TMI 1696 - HC - VAT and Sales Tax

Respondent's Lack of Personal Hearing Violated Natural Justice, Orders Set Aside

Madhucon Projects Limited Versus State Tax Officer, Commercial Tax Officer, Ettayapuram

The Court found the respondent's failure to afford a personal hearing before issuing final assessment orders to be a violation of natural justice ... Principles of natural justice - case of petitioner is that the respondent failed to afford personal hearing to the petitioner before passing the final assessment orders - HELD THAT:- It is mandatory to afford personal hearing before passing final assessment orders pursuant to the pre-revision notices. The authority ought to have issued an independent notice of hearing fixing a specific date for appearance irrespective of the fact as to whether she receives objections or not. The respondent failed to afford personal hearing and mechanically passed orders - Therefore, the impugned orders passed by the respondent are violative of principles of natural justice and hence, the same are liable to be set aside. The matters are remanded back to the respondent for fresh consideration - petition allowed by way of remand. Issues: Failure to afford personal hearing before passing final assessment orders.Analysis:The petitioner's grievance in the Writ Petitions was the respondent's failure to provide a personal hearing before issuing final assessment orders despite receiving objections. The petitioner argued that personal hearing is mandatory, citing various judgments. The Special Government Pleader contended that the petitioner neglected to file objections timely and failed to produce supporting records. The Court noted the necessity of personal hearing post pre-revision notices and emphasized the importance of issuing a separate notice for hearing, regardless of objections received.In a similar case, a Division Bench held that denying personal hearing solely based on the absence of objections is unjustifiable. The Bench clarified that even without objections, the assessing authority should schedule a hearing and pass orders on merit if the assessee fails to appear. The Court referenced a Supreme Court case highlighting the general requirement of a hearing unless excluded by statute.Upon reviewing the impugned orders, the Court found the respondent's failure to provide personal hearing and mechanical order issuance. Citing the Division Bench's decision, the Court deemed the respondent's actions a violation of natural justice principles. Consequently, the Court allowed the Writ Petitions, set aside the impugned orders, and remanded the matters to the respondent for reconsideration. The respondent was instructed to provide relied-upon details, call for objections, conduct personal hearings, and complete the process within three months from the order receipt. No costs were awarded, and the connected miscellaneous petitions were closed.