Sufficient cause for reopening ex parte assessment may be required, yet conditional reconsideration can still be granted in justice.
An ex parte assessment under the Madhya Pradesh Value Added Tax Act could be reopened only on showing sufficient cause for non-appearance, and the record showed repeated opportunities had been given without material proving that cause. The Court nevertheless considered that conditional relief could be granted in the interests of justice, particularly having regard to the tax burden, and interfered with the rejection order. The application was directed to be reconsidered afresh subject to deposit of part of the disputed amount and production of supporting material, so the petitioners obtained only conditional relief and fresh decision on compliance with the imposed terms.
Issues: Whether the order rejecting the application to set aside the ex parte assessment under Section 34 of the Madhya Pradesh Value Added Tax Act, 2002 was liable to be interfered with and the matter reopened for fresh consideration.
Analysis: The petitioners sought reopening of the ex parte assessment on the basis of absence of counsel and claimed that sufficient cause prevented appearance on the date fixed. The record showed repeated opportunities during the assessment proceedings and no material demonstrating that the petitioners were prevented by sufficient cause from appearing on the final date. At the same time, the Court found that, in the interests of justice and having regard to the substantial tax burden, an opportunity to have the application reconsidered could be granted on terms. The impugned rejection was therefore interfered with and the matter was directed to be reconsidered afresh after deposit of part of the disputed amount and production of supporting material.
Conclusion: The rejection of the Section 34 application was set aside and the petitioners were granted a conditional opportunity to seek reopening of the ex parte assessment, with fresh consideration by the authority.
Final Conclusion: The writ petitions succeeded only to the extent of obtaining conditional relief against the rejection order, and the assessment-related application was remitted for fresh decision subject to compliance with the conditions imposed.
Ratio Decidendi: An ex parte assessment may be reopened under the statutory provision only on showing sufficient cause, but the Court may in appropriate cases grant conditional relief and direct fresh consideration in the interests of justice.
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