Rectification petition allowed under Section 161 after finding denial of personal hearing violated natural justice principles The HC allowed a rectification petition under Section 161, finding that the petitioner genuinely sought adjournment to furnish records and had identified ...
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Rectification petition allowed under Section 161 after finding denial of personal hearing violated natural justice principles
The HC allowed a rectification petition under Section 161, finding that the petitioner genuinely sought adjournment to furnish records and had identified legitimate discrepancies including improper denial of ITC claims and incorrect tax imposition. The court held that the respondent violated natural justice principles by not granting personal hearing as required under Section 161 proviso before passing the rectification order. While setting aside the impugned orders and directing reassessment, the court balanced interests by requiring the petitioner to deposit Rs. 1,00,000 per year given the substantial tax liability involved.
Issues involved: Challenging assessment order, rectification order, and consequential proceedings for multiple assessment years.
Assessment Proceedings: - Petitioner is a manufacturer and trader of fireworks under TN GST Act, purchasing raw materials from registered dealers. - Assistant Commissioner conducted statutory audit, issued show cause notice proposing tax, penalty, and interest under TNGST Act. - Petitioner requested extensions to submit records due to medical leave of GST personnel, but orders were passed without granting sufficient time. - Petitioner filed rectification petitions under Section 161, seeking to rectify errors in assessment order.
Court's Analysis: - Court noted failure of authorities to consider adjournment requests and record them in assessment order. - Recognized the need for petitioner to have additional opportunity to submit records due to voluminous transactions. - Upheld petitioner's right to file rectification petition with supporting records, granting opportunity for correction under Section 161. - Cited proviso to Section 161 requiring authorities to grant personal hearing before passing rectification order, which was not followed in this case. - Set aside impugned orders, directing petitioner to pay specified amount for each year and allowing re-assessment within six weeks upon deposit.
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