Case Law Details
Napin Impex Pvt. Ltd. Vs Commissioner (Rajasthan High Court)
In a significant ruling, the Rajasthan High Court has quashed an assessment order under the Rajasthan Value Added Tax Act, 2003, issued against Napin Impex Pvt. Ltd. The court highlighted the fundamental principle that orders by judicial and quasi-judicial authorities must be reasoned to comply with natural justice.
The case arose from an assessment order dated January 24, 2017, which created a demand of ₹27,87,371 against Napin Impex Pvt. Ltd. for the assessment year 2014-2015. The petitioner had filed returns claiming Input Tax Credit (ITC), which was disallowed by the system-generated order without providing any reasoning. The petitioner contended that this lack of reasoning violated natural justice principles, as established in several Supreme Court rulings.
The petitioner’s counsel argued that the order was a result of automated computation without any human oversight or reasoning. It failed to mention the issuance of notice, non-compliance by the petitioner, or specific reasons for disallowing ITC. This, they argued, contravened Section 23 of the Act concerning deemed assessment, which should be applied in conjunction with Section 24. The counsel further emphasized that no proceedings had been initiated under Section 24, rendering the order procedurally flawed.
The respondents contended that the petitioner had an alternative remedy of appeal and had failed to produce the necessary books of accounts to substantiate the ITC claims. They argued that reasons for the disallowance were detailed in their reply to the writ petition.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
