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of <h1>Ex-parte assessment order set aside for lack of proper notice; ITC claim partially restored under natural justice rules</h1> The HC held that the ex-parte assessment order was passed without proper service of notice, violating natural justice principles. Notices sent only by ... Service of notice - no notice was issued to the writ petitioner - draft assessment order was not communicated and an ex-parte assessment order was passed and the ex-parte assessment order was also not served on the writ petitioner - ex-parte order - violation of principles of natural justice - HELD THAT:- As could be seen from the materials, which were placed before the learned tribunal, the notices were sent to the writ petitioner through E-mail and no physical copies were served. However, the assessing officer records in the assessment order that the writ petitioner is not in existence at the place of business and therefore, the department sent the notices through E-mail. In any event, part of the ITC claim has been allowed and it is not clear as to how the authority was convinced to do so. However, with a view to afford one more opportunity to the writ petitioner, we are of the view that the matter should be remanded back to the assessing officer to consider the claim of ITC, which was rejected and the ITC claim, which was allowed shall remain intact. The order passed by the learned tribunal is set aside and the assessment order dated 27th May, 2019 to the extent where ITC claim was disallowed as well as the purchase tax, which was levied is set aside and the matter stands remanded to the assessing officer - petition allowed. ISSUES: Whether an ex-parte assessment order passed without physical service of notice and draft assessment order violates principles of natural justice under the West Bengal Value Added Tax Act, 2003.Whether service of notice through e-mail is sufficient when the registered dealer is not found at the place of business.Whether the assessing officer is obligated to provide an opportunity of personal hearing before passing an assessment order affecting Input Tax Credit (ITC) claims.Whether the writ petitioner is entitled to contest the levy of purchase tax under Section 17 of the West Bengal Value Added Tax Act, 2003. RULINGS / HOLDINGS: The ex-parte assessment order was set aside to the extent of disallowed ITC claim and purchase tax levied, as the assessing officer failed to afford an opportunity of personal hearing, which is essential for a fair assessment under the Act.Service of notice solely through e-mail was deemed insufficient given the circumstances, since the registered dealer's physical presence at the business address was not established, thereby compromising proper communication.The matter was remanded to the assessing officer with directions to afford the registered dealer 'an opportunity of personal hearing' and to consider all written submissions, books of accounts, and documents before passing a fresh order on the ITC claim.The writ petitioner was held entitled to contest the levy of purchase tax under Section 17 of the Act during the reassessment process.No coercive recovery action shall be initiated against the petitioner pending the reassessment and fresh order. RATIONALE: The Court applied the principles of natural justice requiring that a registered dealer be given adequate notice and an opportunity to be heard before an adverse assessment order is passed under the West Bengal Value Added Tax Act, 2003.The Court noted the statutory framework under the Act and the necessity of service of notices in a manner that ensures actual communication, rejecting the sufficiency of e-mail service alone when physical presence was not confirmed.The judgment relied on the established doctrine that partial allowance of ITC in an ex-parte order without explanation does not justify denial of opportunity to contest the remainder of the claim.The Court emphasized the availability of alternative remedies and the need for administrative fairness, directing reassessment within a fixed timeframe to ensure expeditious resolution.No dissent or doctrinal shift was indicated; the decision reaffirmed procedural fairness and statutory compliance in tax assessments.
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