2020 (8) TMI 135 - HC - VAT and Sales Tax

Court Reinstates Tax Appeals Dismissal, Emphasizes Procedural Fairness

Consolidated Construction Consortium Ltd. Versus The State Tax Officer Palakkad, The Joint Commissioner (Appeals), (Formerly Deputy Commissioner (Appeals), State Goods And Services Tax Department (Kerala), The Assistant Commissioner Of State Tax, State Goods And Services Tax Department (Kerala),

Consolidated Construction Consortium Ltd. Versus The State Tax Officer Palakkad, The Joint Commissioner (Appeals), (Formerly Deputy Commissioner ... Issues:Dismissal of appeals in default under the Kerala Value Added Tax Act for assessment years 2012-13, 2013-14 & 2014-15.Analysis:The petitioner appealed against assessment orders Exts.P1 to P3, which were dismissed in default due to lack of representation. The petitioner's counsel argued that appeals cannot be dismissed at par as per Section 55(5) of the KVAT Act. The Government Pleader contended that the petitioner intentionally did not appear to take advantage of the limitation under Section 25(1) of the Act. The court noted that while the Act does not specifically allow for dismissal in default, the appellate authority has the discretion to do so. However, the court found the lack of natural justice in the impugned order, especially considering the circumstances during the COVID-19 pandemic.The court set aside the impugned orders Exts.P9 to P11 and ordered the appeals to be heard afresh at the first appellate authority after affording the petitioner an opportunity to be heard. The parties were directed to appear before the authority on a specified date. The court also acknowledged the interim stay during the pending appeals and ruled that once the appeals are restored, the interim orders automatically come into effect.In conclusion, the court disposed of the writ petition by ordering a fresh hearing of the appeals to ensure procedural fairness and compliance with the law.