Speaking assessment orders and natural justice require reasoned rejection of an assessee's submissions before tax liability is sustained.

Assessment orders under the Maharashtra Value Added Tax Act, 2002 and the Central Sales Tax Act, 1956 were found unsustainable because they did not deal with the assessee's submissions or give reasons for rejecting its stand that it was only operating an online marketplace and not buying or selling goods. The orders also failed to consider reliance on the exemption under Section 79 of the Information Technology Act, 2000. The absence of reasons rendered the decision-making process inconsistent with natural justice, and an appeal could not cure that defect because the rejection of submissions remained unexplained. The orders were set aside and the matter was remanded for fresh consideration.

---

---

Issues: Whether assessment orders passed under the Maharashtra Value Added Tax Act, 2002 and the Central Sales Tax Act, 1956 could be sustained when they did not deal with the assessee's submissions and were therefore alleged to be non-speaking and contrary to natural justice.

Analysis: The impugned orders recorded the assessee's stand that it was only providing an online marketplace and was not carrying on the business of buying and selling goods, but they did not give reasons for rejecting that stand. The orders also did not consider the reliance placed on the statutory exemption under Section 79 of the Information Technology Act, 2000. The absence of reasons meant that the decision-making process was flawed, and relegating the assessee to an appeal would not cure the defect because neither the assessee nor the appellate authority would know why the submissions were rejected. An original authority must deal with the parties' submissions and support its conclusion with reasons, particularly when the submissions are not accepted.

Conclusion: The assessment orders were set aside and the matter was remanded to the Assessing Officer for fresh consideration and disposal in accordance with law after following the principles of natural justice.

---