High Court overturns assessment order citing lack of natural justice, stresses importance of fair process The High Court set aside the assessment order due to the violation of principles of natural justice, specifically the lack of opportunity for the ...
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High Court overturns assessment order citing lack of natural justice, stresses importance of fair process
The High Court set aside the assessment order due to the violation of principles of natural justice, specifically the lack of opportunity for the petitioner to file objections and have a personal hearing. The Court emphasized the importance of granting adequate time for assessees to respond to notices, especially in light of Covid-related challenges. The petitioner was directed to file objections by 30.10.2021, with a hearing scheduled for 10.11.2021. The judgment underscored the significance of adhering to principles of natural justice and ensuring fairness in assessment proceedings.
Issues: Challenge to assessment order based on violation of principles of natural justice and lack of opportunity for objection and personal hearing.
In this case, the petitioner challenged Ext.P6 assessment order primarily on the grounds of violation of principles of natural justice as he was not given an opportunity to file objections and have a personal hearing. The petitioner claimed that due to Covid-related issues, he was unable to respond to the show cause notice served under Section 74 (1) of the CGST/SGST Act, 2017. The petitioner argued that had he been granted the opportunity to file objections, the assessment order would have been different. The High Court observed that the assessment order was issued without giving the petitioner sufficient time, especially considering the extension of limitation periods by the Hon'ble Supreme Court due to Covid. The Court set aside the assessment order, directing the petitioner to file objections by 30.10.2021 and scheduled a hearing for 10.11.2021, emphasizing the importance of providing adequate time for assessees to respond to notices.
The Court highlighted the significance of granting assessees a reasonable time to file objections, especially considering that an assessment order marks the beginning of various rights and obligations for the assessees. The Court noted that the petitioner was not given adequate time to reply to the notice, particularly in light of the Supreme Court's extension of limitation periods due to Covid-related issues. The judgment emphasized the importance of adhering to principles of natural justice and providing assessees with sufficient opportunity to respond to notices before issuing assessment orders. The Court set aside the assessment order, stressing the need for fairness and due process in such proceedings.
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