2023 (3) TMI 122 - HC - VAT and Sales Tax

High Court quashes assessment orders, mandates re-evaluation for 2013-2017 due to lack of personal hearing.

The High Court quashed assessment orders for the years 2013-2017 due to lack of personal hearing before passing the orders. The court directed a ... Principles of natural justice - right to personal hearing - service and dispatch of orders - quashing and remand for fresh consideration - treatment of impugned order as show cause noticePrinciples of natural justice - right to personal hearing - quashing and remand for fresh consideration - Impugned assessment orders dated 29.10.2019 were passed without affording personal hearing and therefore violated principles of natural justice. - HELD THAT: - The Court found that the assessment orders, though dated 29.10.2019, were dispatched only on 27.01.2023 and received by the petitioner on 30.01.2023. The assessment orders themselves disclose that no personal hearing was afforded to the petitioner. In view of the absence of an opportunity of personal hearing, the orders suffer from breach of the principles of natural justice. The respondent-Department has recorded instructions to re-do the assessment and is prepared to proceed afresh. Accordingly, the Court quashed the impugned assessment orders and remanded the matters to the first respondent for fresh consideration on merits and in accordance with law, with a direction to adhere to principles of natural justice including granting the right of personal hearing; final orders are to be passed within twelve weeks from receipt of this order. The petitioner's authorised representative was specifically directed to appear for personal hearing on the stated date and time. [Paras 6, 7, 9, 11]Impugned assessment orders dated 29.10.2019 quashed; matters remanded to the first respondent for fresh consideration and final orders within twelve weeks after affording personal hearing.Service and dispatch of orders - treatment of impugned order as show cause notice - In W.P. No. 4385 of 2023 the impugned assessment order was not preceded by a proper show cause notice and is to be treated as a show cause notice permitting the petitioner to reply. - HELD THAT: - The Court observed that a proper show cause notice had not been sent in respect of W.P. No. 4385 of 2023. Given the defective initiation of the proceeding and the absence of proper service, the Court treated the impugned assessment order in that petition as a Show Cause Notice and permitted the petitioner to submit a reply which the respondent must consider while passing the final orders on remand. [Paras 10, 11]Impugned assessment order in W.P. No. 4385 of 2023 treated as a Show Cause Notice; petitioner permitted to file a reply to be considered by the respondent on remand.Final Conclusion: The writ petitions are allowed in part: the assessment orders dated 29.10.2019 for the assessment years 2013-14 to 2016-17 are quashed and remanded to the first respondent for fresh consideration in accordance with law and after granting personal hearing; in W.P. No. 4385 of 2023 the impugned order is treated as a show cause notice and the petitioner is permitted to reply; final orders to be passed within twelve weeks. Issues:Challenging assessment orders for violation of principles of natural justice.Analysis:The writ petitions challenged assessment orders for the years 2013-14, 2014-15, 2015-16, and 2016-17, citing a lack of personal hearing before passing the impugned orders. The petitioner received the assessment orders on 30.01.2023, despite being dated 29.10.2019. The cover in which the orders were enclosed indicated dispatch on 27.01.2023, supporting the petitioner's claim. It was noted that no personal hearing was granted to the petitioner before issuing the assessment orders.The Government Advocate for the respondents presented written instructions dated 15.02.2023, expressing readiness to re-do the assessments. Consequently, the High Court decided to quash the assessment orders dated 29.10.2019 and remand the matters to the first respondent for fresh consideration in compliance with the law. In one specific case (W.P.No.4385 of 2023), where a proper show cause notice was not issued, the assessment order was treated as a show cause notice. The petitioner was allowed to respond, and the reply would be considered before final orders were passed.The judgment directed the first respondent to reevaluate the matters within twelve weeks from the date of the order, ensuring adherence to natural justice principles, including granting the right of personal hearing to the petitioner. The petitioner's representative was instructed to attend a personal hearing on 03.03.2023 at 11:00 a.m. before the first respondent. The writ petitions were disposed of without costs, and connected miscellaneous petitions were closed.