Assessment order under Section 74 set aside for violating natural justice principles and passing non-speaking order

HC set aside assessment order u/s 74 due to violation of natural justice principles. Assessing Officer failed to consider petitioner's reply to show cause notice and passed non-speaking order by reproducing paragraphs from notice. Court held petitioner entitled to considered opinion after proper evaluation of objections. Matter remanded to Assessing Officer with directions to pass detailed order considering petitioner's reply dated 17.1.2022 while following natural justice principles. Petition allowed by way of remand.

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Issues involved:
The issues involved in this case are the challenge to an impugned order passed by the respondent regarding tax liability under the Tamil Nadu Goods and Services Act, 2017, specifically related to reconciliation of returns, ITC verification, and the failure to consider the petitioner's reply before passing a non-speaking order.

Details of the Judgment:

*Issue 1: Failure to Consider Petitioner's Reply*
The petitioner, engaged in the trading of garments, challenged an order by the respondent regarding tax liability under the Act. Despite the petitioner filing a reply and the respondent recording it during a personal hearing, the impugned order was issued without considering the petitioner's response, leading to the filing of the Writ Petition. The Court noted that the impugned order was non-speaking and observed that the Appellate Authority could provide a detailed order after considering the petitioner's reply.

*Issue 2: Role of the Appellate Authority*
The Court considered that while the Appellate Authority could play a role similar to the Assessing Officer in reviewing the matter, it could not remand the case for fresh consideration. The petitioner was entitled to have two well-considered opinions from both the Assessing Officer and the Appellate Authority, emphasizing the importance of the Assessing Officer considering the petitioner's reply before passing an order.

*Issue 3: Duties of the Assessing Officer*
The Court outlined the duties of the Assessing Officer before passing an assessment order, emphasizing the need for providing sufficient time for the assessee to respond, conducting a full-fledged inquiry, and passing a speaking order with reasons for rejecting any objections raised by the assessee. Failure to follow these aspects could lead to appeals and potential revenue loss for the Department.

*Conclusion*
The Court set aside the impugned order and remitted the matter back to the Assessing Officer for reconsideration, directing a detailed order after taking into account the petitioner's reply. The judgment emphasized the importance of following principles of natural justice in such proceedings and highlighted the necessity of Assessing Officers passing speaking orders to safeguard the interests of both the assessee and the Revenue.

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