Court sets aside assessment orders for non-compliance with natural justice principles

The court set aside assessment orders under the Central Sales Tax Act for periods 2013-'14, 2015-'16, and 2016-'17 due to non-compliance with natural justice principles. Despite submitting Form-F declarations, assessments were completed without considering required dispatch documents. The court found that not requesting these documents violated natural justice, allowing the writ petitions, and directing fresh assessments with an opportunity for the petitioner to produce necessary dispatch documents along with Form-F declarations.

---

---

Issues:
Assessment under the Central Sales Tax Act for periods 2013-‘14, 2015-‘16, and 2016-‘17 based on Form-F declarations without supporting documents. Non-compliance with principles of natural justice in completing assessments without giving opportunity to produce required documents.

Analysis:

The petitioner, a registered dealer under the Central Sales Tax Act, received notices proposing assessments for certain periods due to non-furnishing of Form-F declarations supporting tax exemption claims. Despite submitting the Form-F declarations upon receiving pre-assessment notices, assessments were completed without considering documents proving goods dispatch as required by Section 6A of the Act. The petitioner challenged these assessment orders primarily on grounds of non-compliance with natural justice principles.

During the hearing, the petitioner's counsel argued that they possessed documents proving goods dispatch covered by the Form-F declarations and would have provided them if requested by the assessing authority. Since the assessing authority did not dispute the submission of Form-F declarations, the failure to request supporting dispatch documents before completing assessments was highlighted as a violation of natural justice principles.

The court acknowledged that while the petitioner submitted Form-F declarations, the assessing authority did not ask for documents proving goods dispatch mentioned in these declarations. Consequently, the court found merit in the petitioner's argument that completing assessments without requesting these documents violated principles of natural justice. Therefore, the court allowed the writ petitions, set aside the impugned orders, and directed the assessing authority to conduct fresh assessments, providing the petitioner with an opportunity to produce the necessary dispatch documents along with the Form-F declarations.

---