2018 (9) TMI 1188 - HC - VAT and Sales Tax

Unfair Assessment Order Quashed: Violation of Natural Justice in VAT Case

M/s. The Western India Plywoods Ltd. Versus The Assistant Commissioner (CT), Chennai, The Commercial Tax Officer/BTPS, Chennai And The Assistant Commissioner (CT), Chennai

M/s. The Western India Plywoods Ltd. Versus The Assistant Commissioner (CT), Chennai, The Commercial Tax Officer/BTPS, Chennai And The Assistant ... Issues: Violation of principles of natural justice in assessment order under Tamil Nadu Value Added Tax Act, 2006 for assessment year 2016-17.The judgment delivered by Mr. T. S. Sivagnanam, J., of the Madras High Court addressed the challenge to an impugned order dated 13.12.2017 under the Tamil Nadu Value Added Tax Act, 2006 for the assessment year 2016-17. The petitioner, a registered dealer, contended that the order violated the principles of natural justice. The petitioner was not informed about communication between the Assessing Officer and a third respondent regarding stock details, which were crucial for assessment. Despite the petitioner filing objections and the Assessing Officer receiving additional details from the third respondent, no opportunity was provided to the petitioner to respond. The court emphasized that the Assessing Officer has a duty to provide copies of any documents relied upon and allow the petitioner to present objections. The judgment concluded that the assessment was completed incorrectly and did not comply with the law, leading to the setting aside of the impugned order and remanding the matter for a fresh consideration. The first respondent was directed to provide copies of documents obtained, grant time for further objections, allow a personal hearing, and redo the assessment in accordance with the law. No costs were awarded, and the connected Writ Miscellaneous Petition was closed as a result of the judgment.