2026 (1) TMI 635 - HC - GST

Tax assessment orders challenged for breach of natural justice; petition dismissed as petitioner failed to avail hearing, appeal open

Dominant issue: Whether impugned assessment orders offend principles of natural justice and warrant judicial interference. The HC found the petitioner's ... Violation of principles of natural justice - reply filed by the petitioner was rejected by the respondent - petitioner is willing to file an appeal against the said impugned assessment order - HELD THAT:- The reply filed by the petitioner is neither proper not effective and hence, the same was rejected by the respondent while passing the impugned assessment order. Therefore, it is clear that though the respondent had provided sufficient opportunities, due to the inaction on the part of the petitioner, they had given up their rights for personal hearing and filing of reply in these cases. In such case, this Court is of the considered view that the impugned assessment orders passed by the respondent need no interference of this Court. Normally, an Assessee will have two opportunities to present their case. One is before the Assessing Officer and another is before the Appellate Authority. The Appellate Authority will also have similar power of the Assessing Officer to adjudicate the petitioner’s case. In such case, as rightly suggested by the learned Additional Government Pleader, now, the recourse available to the petitioner is to file an appeal against the impugned assessment order - Further, since the time limit is very well available for filing the appeal, the learned counsel for the petitioner also seeks leave of this Court to file an appeal against the impugned assessment orders dated 29.09.2025 passed by the respondent and he has restricted his relief and requested this Court to grant liberty to the petitioner to file an appeal against the impugned assessment order since it will be sufficient to meet out the case of the petitioner. Petition dismissed. Issues: Whether the impugned assessment orders dated 29.09.2025 require interference on the ground of violation of principles of natural justice and inadequate consideration of the petitioner’s reply, and whether the petitioner should be granted liberty to file an appeal against the assessment orders.Analysis: The Court examined the procedural history showing issuance of show cause notices and filing of replies by the petitioner, followed by multiple notices affording opportunities for personal hearing. The Court found that the petitioner failed to appear despite repeated opportunities and that the replies filed were not proper or effective. The Court noted that where an assessee has not availed the afforded opportunities and the reply is insufficient, the principles of natural justice are not infringed. The Court also considered the availability of alternative remedy before the Appellate Authority, which possesses the power to adjudicate afresh and afford hearing, and observed that time remains available for filing an appeal.Conclusion: The impugned assessment orders do not warrant interference and the petitions are dismissed; however, the petitioner is granted liberty to file an appeal before the Appellate Authority within two weeks, who shall consider the appeal on merits and in accordance with law by providing sufficient opportunity to the petitioner. Ratio Decidendi: Where an assessee, after filing replies, fails to avail repeated opportunities of personal hearing and the replies are found insufficient, a court will not interfere with the assessment order and the appropriate remedy is to seek adjudication before the Appellate Authority which must be allowed to consider the matter on merits.