Tvl. Mold-Tek Packaging Ltd Vs Deputy State Tax Officer (Madras High Court)
Madras High Court held that passing of ex-parte order prematurely before expiry of time limit for filing reply and without granting personal hearing is against the principle of natural justice and accordingly the order is set aside.
Facts- Petitioner, vide the present petition, challenges the ex-parte assessment order dated 30.12.2023. It is contested that a show cause notice was issued in FORM DRC-01 on 11.12.2023, wherein 30 days’ time was provided for filing a reply, which was due on or before 10.01.2024. However, the impugned assessment order was passed on 30.12.2023, 10 days before the expiry of the time limit for submitting the reply, thereby violating the principles of natural justice.
Conclusion- Held that although the petitioner was granted time to file the reply on or before 10.01.2024, the impugned order was prematurely passed on 30.12.2023 i.e, 10 days before the expiration of the time limit. Therefore, it is clear that the impugned order was passed without receiving the petitioner’s reply and without providing a personal hearing. The principles of natural justice mandate that a party be given a fair and reasonable opportunity to present their case. In the present case, the petitioner was deprived of the opportunity to present their case, as the assessment was finalized without considering their reply and in the absence of a personal hearing. It is a well-settled principle of law that any order passed in violation of the principles of natural justice is void and liable to be set aside. In the instant case, the respondent’s failure to consider the petitioner’s reply and provide a hearing before passing the impugned order is a clear violation of these principles.
