2018 (9) TMI 549 - HC - VAT and Sales Tax

Court sets aside assessment order under TNVAT Act for lack of personal hearing, remands for fresh consideration.

M/s. Vivek Computers Versus The State of Tamil Nadu, The Commissioner of Commercial Taxes And The Assistant Commissioner

M/s. Vivek Computers Versus The State of Tamil Nadu, The Commissioner of Commercial Taxes And The Assistant Commissioner - TMI Issues:Challenge to assessment order under TNVAT Act for undisclosed purchase leading to additional tax and penalty without proper consideration of reply and opportunity of personal hearing.Analysis:The petitioner, a registered dealer under TNVAT Act and CST Act, challenged the assessment order for the assessment year 2013-14 due to an alleged undisclosed purchase of Rs. 94,37,556. The third respondent issued a notice proposing additional tax and penalty without considering the petitioner's reply and without providing a personal hearing. The petitioner contended that the impugned order was passed without following guidelines and sought to set it aside.The petitioner's counsel argued that the impugned order failed to consider the petitioner's reply and the request for a personal hearing, as required by previous court decisions. The Additional Government Pleader contended that the petitioner had alternative remedies and did not avail the opportunity for a personal hearing. The court examined the records and notices issued by the third respondent, noting discrepancies in the timeline of responses and the lack of a personal hearing opportunity.The court found that the petitioner had indeed requested a personal hearing in their reply dated 22.03.2018, which was received before the impugned order was passed. Citing a previous court decision, the court held that when a request for a personal hearing is made, the Assessing Officer must provide such an opportunity. The failure to do so in this case rendered the assessment order invalid.Consequently, the court set aside the impugned order and remanded the matter to the Assessing Officer for fresh consideration. The Assessing Officer was directed to schedule a personal hearing within 15 days, allow the petitioner to peruse relevant documents, provide time for additional objections if necessary, and pass a reasoned order within 30 days of the personal hearing. The writ petition was allowed, and no costs were imposed.In conclusion, the court's decision emphasized the importance of providing a personal hearing when requested and ensuring proper consideration of replies in assessment proceedings under the TNVAT Act.