High Court Remands Tax Matter for Fresh Decision Due to COVID Delay, Emphasizes Natural Justice

The High Court allowed the appeal, remanding the matter to the Assessing Authority for a fresh decision without coercive action due to the justified delay caused by COVID restrictions. The court quashed the ex parte order for lack of natural justice principles, directing a fair hearing, submission of documents, de-freezing of bank accounts, and setting guidelines for further proceedings.

---

---

Issues:
1. Rejection of appeal on the grounds of being barred by limitation.
2. Violation of principles of natural justice and lack of sufficient reasons in the ex parte order.

Analysis:
1. The petitioner had appealed against the order passed by the Deputy Commissioner of State Tax, which was rejected on the grounds of being time-barred. The High Court acknowledged the delay in filing the appeal due to COVID restrictions and found it sufficiently explained. The court noted that the delay was not intentional and decided to intervene despite the statutory remedy available. The court held that the delay was justified under the circumstances and ordered that the matter be remanded to the Assessing Authority for a fresh decision on merits without any coercive action against the petitioner during the pendency of the case.

2. The High Court observed that the order passed by the Deputy Commissioner of State Tax lacked adherence to the principles of natural justice. The court found that the petitioner was not given a fair opportunity to present their case, and the ex parte order did not provide sufficient reasons for determining the tax amount due. Emphasizing the importance of natural justice, the court quashed the impugned order, the notice issued, and directed the Assessing Authority to decide the case afresh while ensuring a fair hearing and providing an opportunity to submit essential documents. The court also ordered the de-freezing of the petitioner's bank account(s) and set guidelines for further proceedings, including the deposit of a certain percentage of the demand raised.

In conclusion, the High Court intervened in the matter due to the justified delay caused by COVID restrictions and the violation of natural justice principles in the ex parte order. The court set aside the impugned orders, directed a fresh decision on merits, and outlined specific guidelines to ensure a fair process and protect the rights of the petitioner.

---