2017 (10) TMI 427 - HC - VAT and Sales Tax

Court emphasizes due process, quashes tax registration cancellation, stresses natural justice principles.

N.V. Kamalesh Kumar son of Venkatesulu Versus The Additional Commissioner (RP) Commercial Taxes, M/s. B.S. Silver Emporium

N.V. Kamalesh Kumar son of Venkatesulu Versus The Additional Commissioner (RP) Commercial Taxes, M/s. B.S. Silver Emporium - TMI Issues:Challenge to order cancelling registration under TNVAT Act and CST Act; Lack of opportunity to petitioner; Hasty disposal of revision petition.Analysis:1. Challenge to Order Cancelling Registration: The petitioner challenged the order passed by the first respondent, which upheld the cancellation of registration granted to the second respondent under the TNVAT Act and CST Act. The Joint Commissioner had dismissed the revision petition filed by the second respondent, leading to further appeals. The High Court observed discrepancies in the registration process, including allegations of forged documents and manipulated information. The Court emphasized the need for proper notice to all parties involved in such proceedings to ensure fairness and due process.2. Lack of Opportunity to Petitioner: The primary ground of challenge was the lack of opportunity afforded to the petitioner during the proceedings. The High Court noted that the petitioner was not given a chance to present their contentions and that the impugned order was passed without proper communication to the petitioner. The Court highlighted the importance of providing a fair hearing to all parties involved in legal disputes, emphasizing the right to be heard as a fundamental aspect of natural justice.3. Hasty Disposal of Revision Petition: Another significant issue raised was the haste in disposing of the revision petition without giving adequate time for proper consideration and without serving notice to the petitioner. The Court criticized the quick turnaround in passing the impugned order and pointed out the need for a thorough and fair review process in such matters. The High Court directed the first respondent to conduct a fresh hearing, ensuring that both parties are given proper notice, opportunity to present their case, and a chance to respond to each other's submissions.In conclusion, the High Court allowed the writ petition, quashed the impugned order, and remanded the matter back to the first respondent for a fresh decision. The Court emphasized the importance of following due process, providing opportunities for all parties to be heard, and conducting proceedings in a fair and transparent manner. The judgment underscored the principles of natural justice and the need for a thorough and unbiased review of legal disputes to ensure justice is served.