Inox Wind Limited Vs Assessment Unit (Himachal Pradesh High Court)
Assessment proceedings against the petitioner were started and completed on 23.01.2018 and on the same day penalty proceedings were initiated. Appeal against the assessment order got dismissed on 14.11.2022. After this department issued penalty notice u/s 271 (1) (c) 0n 27.03.2024, calling upon the petitioner to submit its response on 28.03.2024 and finally fixed for arguments on 29.03.2024, on which case was finally decided.
It was argued on behalf of petitioner that show cause notice was issued to grant opportunity of personal hearing, but less than 24 hours were provided to file documents and complete opportunity of personal hearing was wrapped in 48 hours.
After considering the submission of the petitioner HC have held that the parameters of principles of natural justice cannot be covered by any straight jacket formula. Petitioner was deprived of its right of fair hearing as contemplated under the law given the fact that vide notice dated 27.03.2024, less than 24 hours’ time was granted to it to produce the documentary evidence on 28.03.2024 by 4:30 p.m. and equal time, i.e., less than 24 hours’ time was granted for addressing oral arguments. Hence, penalty order and demand notice are hereby quashed, and the matter is remanded back to the file of AO.
