Court Orders Return of Defective Forms for Rectification in Violation of Natural Justice

The Court found the 1st respondent's actions to violate natural justice by rejecting valid declaration forms without notifying the petitioner of defects or allowing rectification. The Court ordered the return of defective forms for rectification, followed by a reasoned order and a personal hearing. The Writ Petition was allowed, setting aside the impugned order and remitting the matter back to the 1st respondent for compliance. No costs were awarded.

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Issues:
Challenge to assessment order under Rule 12(7) of the CST Rules for AY 2015-16.

Analysis:
1. The petitioner contested an order passed by the 1st respondent under Rule 12(7) of the CST Rules for AY 2015-16, alleging that the initial assessment order did not consider claims for concessional tax rates and exemptions on Inter-State and export sales, without notifying the petitioner.

2. The Court intervened due to violations of natural justice, prompting the reopening of assessments for dealers like the petitioner to file statutory declarations under Rule 12(7) of the CST Rules.

3. The petitioner claimed to have submitted valid declaration forms for concessional rates and exemptions on Inter-State and export sales, but the 1st respondent rejected some forms as incomplete without specifying the defects or allowing rectification.

4. The respondent argued that incomplete declaration forms should be considered invalid, but acknowledged the necessity of notifying the dealer about defects before rejection.

5. The Court noted that the petitioner had filed valid declaration forms before the original assessment, and the 1st respondent's rejection without notice or opportunity to rectify defects violated principles of natural justice.

6. Refusal to return original declaration forms prevented rectification by the petitioner, depriving them of claiming tax differences from purchasers and resulting in unjust loss.

7. Legal precedents emphasized the duty to return defective forms for rectification, highlighting the importance of providing dealers with opportunities to rectify defects before rejection.

8. Consequently, the Court found the 1st respondent's actions to be in violation of natural justice and ordered the return of defective forms to the petitioner for rectification, followed by a reasoned order after re-submission and a personal hearing.

9. The Writ Petition was allowed, setting aside the impugned order and remitting the matter back to the 1st respondent for compliance with the Court's directions.

10. The judgment concluded by closing pending petitions and making no order as to costs.

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