Court quashes tax order from 2008-09, stresses fair hearing for Assessee, emphasizes due process

The court quashed the order, Notice of Demand, and Certificate Proceeding related to the period 2008-09 due to lack of proper Notice to the petitioners and remanded the matter back to the Deputy Commissioner for fresh consideration, emphasizing the necessity of providing the Assessee with a fair hearing before imposing tax liability. The court highlighted the importance of following due process in tax matters and directed the Deputy Commissioner to make a new decision independently, considering all relevant factors and allowing the petitioners to present their case effectively.

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Issues:
1. Challenge to order dated 9th September, 2014, Notice of Demand, and Certificate Proceeding due to lack of hearing opportunity.
2. Validity of service of Notice on guarantors instead of the petitioners.
3. Failure to follow due process in imposing tax liability without proper Notice to the Assessee.
4. Remand of the matter for fresh decision by the Deputy Commissioner, Commercial Taxes, Gumla Circle, Gumla.

Analysis:
1. The writ petition challenged the order dated 9th September, 2014, Notice of Demand, and Certificate Proceeding on the grounds of not receiving any Notice of hearing and the ex-parte order being passed without proper proceedings for reassessment. The court noted that the Deputy Commissioner had passed the order without serving Notice on the petitioners but on the guarantors instead, which was deemed insufficient in the eyes of the law, especially when imposing tax liability. The court emphasized the necessity of serving Notice to the Assessee before making any such decision. As a result, the court quashed the order, Notice of Demand, and Certificate Proceeding related to the period 2008-09 and remanded the matter back to the Deputy Commissioner for fresh consideration after providing the petitioners with a proper opportunity to be heard.

2. The court highlighted the importance of following due process in tax matters and ensuring that the Assessee is properly notified and given a chance to present their case before any decision is made. The Deputy Commissioner's failure to adhere to these basic requirements led to the court's decision to set aside the previous order and initiate a fresh decision-making process with full consideration of the Assessee's rights.

3. The court directed the Deputy Commissioner to decide afresh on the tax liability of the petitioners after providing them with a fair opportunity to present their case and submit any evidence in support of their position. The court stressed the need for an independent decision-making process without being influenced by the previous order or proceedings that were quashed by the court. The petitioners were granted the liberty to raise all issues before the Deputy Commissioner and submit any evidence necessary for the proper determination of their tax liability.

4. In conclusion, the court allowed the petition and disposed of it with the direction for the Deputy Commissioner to conduct a fresh assessment considering all relevant factors and ensuring that the petitioners are given a fair chance to be heard and present their case effectively.

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