2024 (2) TMI 292 - HC - VAT and Sales Tax

Order Overturned: Natural Justice Violated as Petitioner Denied Opportunity to Respond; Case Remitted for Fair Hearing.

The HC set aside the impugned order dated 25.05.2023 due to a violation of natural justice principles, as the petitioner was not given adequate ... Natural justice - service of notice - personal hearing - opportunity to file reply - setting aside order and remandNatural justice - service of notice - personal hearing - opportunity to file reply - Impugned order passed without physical service of notices and without affording the petitioner an opportunity to file a reply or personal hearing - HELD THAT: - The Court found that notices dated 24.12.2021, 24.03.2023 and 15.05.2023 and the assessment order dated 25.05.2023 were uploaded on the respondents' web portal but were not physically served on the petitioner, resulting in the petitioner being unaware of those communications. Given the absence of a filed reply and the lack of any personal hearing, the Court held that passing an order under such circumstances violated the principles of natural justice. For these reasons the impugned order could not be sustained and was liable to be set aside. [Paras 6, 7]Impugned order set aside for violation of natural justice; matter remitted for fresh consideration after affording opportunity to file reply and for personal hearing.Setting aside order and remand - opportunity to file reply - personal hearing - Remand directions and timeline for fresh adjudication - HELD THAT: - While setting aside the assessment order, the Court remitted the matter to the respondents for fresh disposal. The petitioner was directed to file a reply to the show cause notice dated 24.03.2023 within 21 days from receipt of the order, and the respondents were directed to dispose of the matter after providing sufficient opportunities to the petitioner, including a personal hearing. The respondents undertook to comply if the Court directed so. [Paras 8]Matter remitted to respondents; petitioner to file reply within 21 days and respondents to provide adequate opportunity for hearing before final disposal.Final Conclusion: Impugned order dated 25.05.2023 set aside for breach of natural justice; matter remitted to respondents with directions to permit the petitioner to file a reply within 21 days and to afford sufficient opportunity, including personal hearing, before deciding the matter afresh. Issues involved:The issues involved in the judgment are violation of principles of natural justice, failure to provide opportunity for filing reply and personal hearing, and setting aside the impugned order.Violation of Principles of Natural Justice:The petitioner challenged the impugned order dated 25.05.2023, claiming that prior notices were uploaded on the web portal but not physically served, leading to unawareness. The petitioner argued that no opportunity for filing a reply or personal hearing was provided, violating principles of natural justice.Failure to Provide Opportunity for Filing Reply and Personal Hearing:The respondent contended that despite uploading the notice on the web portal, the petitioner did not attend the personal hearing. However, the respondent assured compliance with any order from the Court. The Court noted the lack of physical service of notices and absence of reply or personal hearing opportunities for the petitioner.Setting Aside the Impugned Order:The Court found that the petitioner's reasons for being unaware of the uploaded notice were genuine. It emphasized that no order can be passed without sufficient opportunities for the petitioner. As a result, the impugned order dated 25.05.2023 was set aside, and the matter was remitted back to the respondents for the petitioner to file a reply within 21 days and for the respondent to dispose of the matter after providing adequate opportunities.Conclusion:The Court set aside the impugned order, directing the petitioner to file a reply within 21 days and the respondent to provide sufficient opportunities for the petitioner. The writ petition was disposed of with no costs, and the connected miscellaneous petition was closed accordingly.