Assessment order set aside for lack of hearing, petitioner to submit documents for tax credit claim

The court set aside the assessment order due to the lack of a personal hearing, directing the petitioner to appear before the officer to provide additional documents for their Input Tax Credit claim. The fresh assessment is to be conducted with the petitioner's participation, emphasizing the importance of procedural fairness and natural justice in tax assessments. The Writ Petition was disposed of with no costs, highlighting the need for parties to have a fair opportunity to present their case in such proceedings.

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Issues:
Challenge to assessment order under Tamil Nadu Value Added Tax Act, 2006 for 2014-15 based on lack of natural justice - Alleged purchase omission and suppression - Opportunity of personal hearing not provided - De novo assessment ordered.

Analysis:
The petition challenges an assessment order dated 28.08.2020 under the Tamil Nadu Value Added Tax Act, 2006 for the fiscal year 2014-15. The primary contention is the violation of natural justice as the petitioner was not granted a personal hearing before the assessment was finalized. The assessing officer mentioned issuing two notices on 01.12.2016 and 19.02.2019, with the petitioner submitting documents on 28.02.2019 in support of their Input Tax Credit (ITC) claim. Despite this, the officer rejected the claim citing the petitioner's failure to meet the burden of proof as per Section 17 of the Act, focusing on alleged purchase omission of Rs. 17,91,902/- and suppression of Rs. 2,88,25,346/-.

Given the absence of a personal hearing before the assessment, the court set aside the impugned order. The petitioner is directed to appear before the respondent officer on 26th November 2020 at 10:30 a.m. without further notice, providing additional documents supporting their ITC claim. The authority is instructed to share any third-party details from the Departmental website intended for use in the assessment with the petitioner beforehand. Following this, a fresh assessment is to be conducted after hearing the petitioner, and the new order must be issued within six weeks.

In conclusion, the Writ Petition is disposed of with no costs, and the connected Miscellaneous Petition is closed. The judgment emphasizes the importance of affording parties a fair opportunity to present their case and participate in the assessment process, ensuring adherence to principles of natural justice and procedural fairness in tax matters.

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