Court overturns tax assessment orders citing lack of natural justice

The court set aside the assessment orders for the years 2009-10 to 2015-16 under the Tamil Nadu Value Added Tax Act, 2006, due to a violation of natural justice. The petitioner, a registered dealer, was not given an opportunity to respond as requested documents were not provided before the orders were passed. The court ordered the return of seized cheques and instructed the respondent to provide the documents within two weeks for the petitioner to submit objections within 15 days. The matter was remitted back to the respondent for fresh consideration, with a requirement for a personal hearing opportunity. No costs were imposed on the petitioner.

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Issues:
Challenge to assessment orders for the years 2009-10 to 2015-16 under the Tamil Nadu Value Added Tax Act, 2006.

Analysis:
The petitioner, a registered dealer, challenged assessment orders for multiple years following a surprise inspection that revealed defects. The petitioner received a show cause notice to explain the defects, and upon requesting copies of seized documents, approached the court for the return of seized cheques. The court ordered the return of cheques and communicated this to the respondent before the impugned orders were passed. However, the assessment orders did not acknowledge the petitioner's representation or the agreement to provide copies of documents upon payment. The court found a violation of natural justice as the petitioner was not given an opportunity to respond due to the failure to provide the requested documents. Consequently, the court set aside the impugned orders and remitted the matters back to the respondent for fresh consideration.

The court emphasized that the respondent must provide the copies of documents requested by the petitioner within two weeks of the order and allowed the petitioner to submit objections within 15 days thereafter. A personal hearing opportunity was also mandated before the respondent redoes the assessment in accordance with the law. The court concluded by closing the writ petitions without imposing any costs.

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