2022 (3) TMI 798 - HC - VAT and Sales Tax

Court remands matter for fresh consideration due to failure to consider appellant's objections, directs submission of bank statement.

The Court set aside the impugned orders and remanded the matter to the respondent for fresh consideration after finding that the appellant's objections ... Alternate remedy - non-consideration of objections and documentary evidence - remand for fresh consideration - opportunity of personal hearingNon-consideration of objections and documentary evidence - remand for fresh consideration - Revised assessment order was passed without reference to or consideration of the objections and documents filed by the assessee and consequently requires fresh consideration. - HELD THAT: - The respondent candidly admitted that the assessee filed objections and produced documents (26AS, month-wise purchase and sales, contract receipt details, software development payment details) prior to passing the revised assessment order dated 19.07.2021, yet the order contains no reference to such objections or documentary evidence. Non-consideration of material objections and documents by the assessing authority amounts to failure to consider relevant material. In the interest of justice and to afford the assessee a fair opportunity, the impugned orders are set aside and the matter remitted to the respondent for fresh consideration on merits after taking into account the objections and documents already filed and after affording an opportunity of personal hearing to the assessee. [Paras 6, 7]Impugned orders set aside; matter remanded to the respondent for fresh consideration on merits and in accordance with law after affording personal hearing.Opportunity of personal hearing - alternate remedy - Procedural consequences and timeline for fresh consideration following remand, including filing of outstanding bank statements. - HELD THAT: - The court directed that because the respondent stated no bank statement had been received, the assessee shall file the bank statement along with a copy of the objections and documents already submitted on 15.07.2021 within two weeks from receipt of the order. Thereafter the respondent is to consider the materials and pass appropriate orders on merits and in accordance with law, after affording an opportunity of personal hearing to the assessee, within four weeks. The court preserved the availability of the alternate statutory remedy but declined to sustain the earlier dismissal that relegated the assessee solely to that remedy without ensuring consideration of materials. [Paras 7]Assessee to file bank statement within two weeks; respondent to consider and pass orders after personal hearing within four weeks; remand without prejudice to statutory appeal.Final Conclusion: The High Court set aside the revised assessment order and the writ decision that dismissed the petition on the ground of alternate remedy, remitted the matter for fresh consideration on merits after the assessee files the outstanding bank statement within two weeks, and directed the assessing authority to decide the matter after affording personal hearing within four weeks; connected petition closed, no costs. Issues:Challenging order relegating to statutory appeal under TNVAT Act - Non-consideration of objections and documents in assessment order - Remand for fresh consideration.Analysis:The appellant challenged an order relegating them to avail the statutory appeal under section 51 of the TNVAT Act, contending that their objections and documents were not considered in the assessment order. The learned Judge dismissed the writ petition based on the availability of an alternate remedy, prompting the appellant to file this writ appeal seeking to set aside the impugned order.The respondent, represented by the Additional Government Pleader (Taxes), stated that the assessment proceedings for the year 2015-16 were completed under section 22(2) of the Act based on monthly returns. Subsequently, an order was passed under rule 8(5)(d) of the TNVAT Rules, 2007, due to missing details in the returns. The appellant's challenge led to a revised assessment order on 19.07.2021. The respondent received various documents from the appellant but noted the absence of a bank statement. Despite this, the assessment was completed and the revised order was passed in accordance with the available records.Upon hearing both parties and reviewing the documents, the Court found that the objections and documents submitted by the appellant were not referenced or considered in the revised assessment order. Consequently, the Court set aside the impugned orders and remanded the matter to the respondent for fresh consideration. The appellant was directed to submit the bank statement along with previously filed objections and documents within two weeks. The respondent was instructed to review the submissions, provide a personal hearing to the appellant, and issue appropriate orders within four weeks to ensure justice is served.In conclusion, the writ appeal was disposed of with no costs, and the connected miscellaneous petition was closed. The judgment emphasized the importance of considering all relevant submissions in assessment orders to uphold fairness and justice in fiscal matters.