Case Law Details
BRT Spinners Private Limited Vs ACIT (Madras High Court)
In the case of BRT Spinners Private Limited Vs ACIT, the Madras High Court has invalidated a notice that required the petitioner to discharge a tax liability without conducting a hearing on the rectification petition filed by the petitioner under Section 84 of the Tamil Nadu Value Added Tax Act, 2006. It was observed that notice is in fact an order passed by the assessing officer disposing the additional rectification petition.
The petitioner challenged the ‘notice’ issued by the assessing officer as an order disposing of their additional rectification petition without providing them an opportunity to be heard. The Madras High Court upheld this challenge, ruling that the authority should have issued a proper notice to the petitioner, conducted a hearing, and then made a decision on the request for rectification.
Though no counter has been filed, the learned Additional Government Pleader, representing the Commercial Taxes Department, fairly acknowledged this procedural lapse. Consequently, the impugned notice was set aside by the High Court. The notice had demanded the discharge of a tax liability amounting to Rs. 27,739 and Rs. 65,215 in two separate cases as a precondition to considering the rectification petition related to liability for sizing contracts.
The Court directed that the petitioner should be allowed to appear before the authority for a hearing on both the rectification petition and the additional rectification petition. It further ordered that a decision should be made within six weeks from the date of the personal hearing, in accordance with law.
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