2022 (1) TMI 614 - HC - VAT and Sales Tax

Court overturns assessment order for 2003-04 under TNGST Act citing lack of natural justice. Assessing Officer directed to provide documents.

The Court set aside the assessment order under the TNGST Act for the Assessment year 2003-04 due to the violation of natural justice principles as the ... Validity of assessment order - copies of documents relied upon by the respondent/Appellate Authority was not furnished despite a specific request, by the appellant - violation of principles of natural justice - HELD THAT:- The grievance of the appellant that failure to furnish the documents relied upon would result in violation of natural justice is well-founded. It has been consistently held that whenever an assessment is made on the basis of certain documents and if a request is made by the assessee, it is incumbent on the Assessing Officer to furnish such copies to enable the assessee to respond to the allegations. The order of assessment dated 28.08.2014 is set aside and the respondent is directed to communicate to the appellant the list of documents available and furnish the copies of such documents which form the basis / relied upon in the order of assessment, at the cost of the appellant - appeal disposed off. Issues:Challenge to assessment order under TNGST Act for Assessment year 2003-04 based on principles of natural justice violation, failure to furnish documents relied upon, interference under Article 226 of the Constitution of India.Analysis:1. The appellant, an assessee under the TNGST Act for the Assessment year 2003-04, reported nil turnover but an Assessment was made fixing the total taxable turnover due to discrepancies found during an inspection. The appellant challenged the assessment order under Article 226 of the Constitution of India, alleging violation of principles of natural justice as copies of relied-upon documents were not furnished despite requests.2. The Writ Court set aside the assessment order and directed the Assessing Officer to provide the necessary documents to the appellant for substantiating their case. Pursuant to this direction, the appellant was furnished with various documents, but certain requested records were not provided, leading to further challenges.3. A subsequent order by the respondent was challenged on grounds of natural justice violation, citing a previous judgment. The Single Judge, however, disposed of the petition, stating the availability of an alternative remedy through a Statutory Appeal where the appellant could obtain the documents from the Appellate Authority.4. The appellant contested the Single Judge's order, arguing that failure to furnish relied-upon documents constitutes a violation of natural justice, warranting interference under Article 226, regardless of the existence of a statutory appeal. The Court acknowledged the appellant's grievance, emphasizing the importance of providing copies of relied-upon documents to enable the assessee to respond adequately.5. Consequently, the Court set aside the assessment order and directed the respondent to furnish the list of documents and provide copies of such documents forming the basis of the assessment. The appellant was instructed to bear the cost of obtaining these documents within a specified timeframe, followed by the opportunity to file objections and a personal hearing before the final order is passed by the respondent.6. The Writ appeal was disposed of with the outlined directions, emphasizing the respondent's obligation to provide the necessary documents for a fair assessment process, ensuring compliance with principles of natural justice.