Court Invalidates Order under Kerala VAT Act, Citing Violation of Natural Justice

The court set aside the order under Section 25(1) of the Kerala Value Added Tax Act, 2003, finding it illegal and in violation of natural justice. The petitioner was directed to appear before the first respondent with necessary documents for assessment, emphasizing the importance of fair procedures and granting reasonable time to parties.

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Issues:
Challenge to order under Section 25(1) of Kerala Value Added Tax Act, 2003 as illegal and violative of natural justice.

Analysis:

1. Issue: Challenge to the order under Section 25(1) of the Act
The petitioner challenged the order dated 28.03.2019 under Section 25(1) of the Kerala Value Added Tax Act, 2003, as illegal and violating principles of natural justice. The first respondent issued a notice to the petitioner on 08.03.2019 for re-assessment of the return for the assessment year 2012-13, nearly 5 and a half years after the said year. The petitioner requested time through Ext.P2, but the order in Ext.P3 was issued without deciding on the request made in Ext.P2. The court observed that the petitioner should have been granted reasonable time for filing a reply and producing books of accounts. The court found Ext.P3 order to be illegal and in violation of natural justice, as the decision taken on Ext.P2 was not communicated to the petitioner, leaving them unaware of the proceedings. The writ petition was disposed of, directing the petitioner to appear before the first respondent with the necessary documents for assessment.

2. Decision of the Court
The court set aside Ext.P3 order and directed the petitioner to appear before the first respondent on 19.09.2019 with the reply and books of accounts supporting the case. The first respondent was instructed to complete the assessment either on 19.09.2019 or any other date communicated to the petitioner, ensuring completion by 15.10.2019. The court emphasized the importance of following fair procedures and granting reasonable time to parties in such matters to uphold principles of natural justice.

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