Tvl. P. C. S. Trades Vs Commissioner of Commercial Taxes (Madras High Court)
The Madras High Court recently adjudicated on two Writ Petitions challenging Assessment Orders related to VAT under the TNVAT Act for the years 2014-2015 and 2015-2016. The petitioner contested the levy of purchase tax and raised objections against the Assessment Orders dated 28.09.2022. Central to the case was the contention that the orders were passed hastily without adequate consideration of the petitioner’s submissions.
The dispute centered around the procedural fairness of the assessment process. The petitioner had received pre-revision notices since 2020 and had been actively participating in the proceedings by responding to notices and attending personal hearings. Despite the petitioner’s request for further time to submit objections and evidence, the Assessment Orders were unexpectedly issued on 28.09.2022.
Furthermore, the petitioner’s subsequent application under Section 84 of the TNVAT Act, seeking revision of the orders, was summarily rejected by the second respondent without due consideration of the petitioner’s representations. The Madras High Court scrutinized these actions and observed that the rejection of the revision request appeared to have been done hastily, especially considering the substantial tax amounts involved: ₹91,46,490 for 2014-2015 and ₹68,98,819 for 2015-2016.
In its judgment dated 09.11.2022, the court noted procedural lapses and undue haste in passing the impugned orders. To rectify the situation and balance the interests of the petitioner, the court set aside the orders dated 09.11.2022, allowing the petitioner to deposit 10% of the disputed tax within 30 days for a fresh hearing. The court emphasized the importance of a fair hearing and directed the second respondent to reconsider the matter, taking into account all relevant documents and previous assessment orders.
