Access Developers Private Limited Vs Assistant Commissioner of Central Tax (Karnataka High Court)
The petitioner challenged an Order-in-Original dated 09.09.2022 passed under the Finance Act, 1994. Although the order was appealable under Section 107 of the Act, the petitioner invoked the writ jurisdiction of the Karnataka High Court relying on an earlier decision of a Co-ordinate Bench in Karnataka Chinmaya Seva Trust and connected matters.
The petitioner contended that the impugned order had been passed ex parte without due service of notice or an opportunity of hearing. It was submitted that the proceedings were based on information furnished by the Income Tax Department under an arrangement between the Central Board for Direct Taxes and the Central Board for Indirect Taxes. The petitioner argued that in similar cases, the High Court had restored proceedings for reconsideration after ensuring an opportunity to the affected parties.
The respondent submitted that jurisdictional officers were empowered to grant an opportunity and decide matters on merits.
The High Court observed that the petitioner had asserted that it had neither been served with notice nor been granted an opportunity of hearing. The Court further noted that the petitioner intended to rely upon statutory provisions to contend that the transaction in question did not result in tax liability. The Court held that these circumstances required consideration before fastening liability, notwithstanding that the writ petition had been filed almost four years after the impugned order.
