2019 (1) TMI 1220 - HC - VAT and Sales Tax

Dismissal of Writ Petitions for Tax Assessment Delay; Appeal Allowed for Input Tax Credit Denial

N. Rajendran Versus The Commercial Tax Officer (Main) Kallakurichi, The State Tax Officer

The court dismissed the writ petitions due to delay and laches in challenging the assessment orders for specific years but allowed the petitioner to ... Validity of orders of assessment - no personal hearing was given to them - principles of natural justice - Held that:- This Court, by order dated 28.04.2015, allowed those writ petitions and set aside the assessment orders with a direction to the Assessing Officer to give an opportunity of personal hearing. Thereafter, the Assessing Officer issued a personal hearing notice to the petitioner on 17.07.2015 and consequently, upon granting such personal hearing, the impugned orders of assessment were passed as early as on 30.09.2015. I do not think that the present challenge before this Court as against the orders of assessment passed as early as on 24.10.2015 can be entertained solely on the reason of delay and latches. If really the petitioner is aggrieved against the said orders, he should have filed either statutory appeal before concerned Appellate Authority or approached this Court and challenge the same immediately after passing the said order. On the other hand, the petitioner has slept over the matter for a long time and thereafter filed these writ petitions only when auction notice was issued against them. So long as the orders of assessment are passed and when the petitioner has not questioned the same immediately, the Assessing Officer cannot be found fault with in issuing the other impugned proceedings viz., the auction notice. The Writ Petitions are dismissed only on the ground of delay and latches - However, as it is contended that the assessment orders were made only on the reason of belated filing of return and that cannot be the reason for denying the eligibility of the petitioner to claim input tax credit, this Court is of the view that all these contentions can be raised before the next fact finding authority viz., the First Appellate Authority by way of filing an appeal - it is open to the petitioner to challenge the orders of assessment before the Appellate Authority, within a period of two weeks from the date of receipt of a copy of this order. Issues involved: Challenge to assessment orders for assessment years 2011-12 to 2013-14, delay and laches in filing writ petitions, denial of eligibility for input tax credit, jurisdiction of the Appellate Authority.Analysis:The judgment pertains to writ petitions challenging assessment orders for specific assessment years, along with an auction notice issued subsequently. Initially, the petitioner had filed writ petitions contesting the assessment orders for the same years due to lack of personal hearing, which were allowed, and the orders were set aside with a direction for a personal hearing. Subsequently, after the personal hearing, the impugned assessment orders were passed. The petitioner did not challenge these orders immediately but did so only when an auction notice was issued for the property to recover tax dues. The court noted that the challenge to the assessment orders passed as early as 2015 cannot be entertained solely on the grounds of delay and laches. The petitioner should have appealed or challenged the orders promptly after issuance. Therefore, the writ petitions were dismissed on the grounds of delay and laches. However, the court allowed the petitioner to raise contentions regarding the denial of input tax credit before the First Appellate Authority by filing an appeal within two weeks from the receipt of the order. The Appellate Authority was directed to consider the appeal on its merits without reference to the period of limitation, provided the statutory requirements were complied with. No costs were awarded, and the connected miscellaneous petitions were closed.In conclusion, the court dismissed the writ petitions based on delay and laches in challenging the assessment orders but allowed the petitioner to appeal to the First Appellate Authority regarding the denial of input tax credit within a specified timeframe. The decision emphasized the importance of timely legal actions and compliance with statutory requirements in tax matters.