Case Law Details
National Handloom Development Corporation Limited Vs The Assistant Commissioner (CT) (Madras High Court)
Having heard learned counsel and upon careful perusal of the pleadings, evidences and records of assessment produced before me, it appears very apparent that the principles of natural justice have been given a go-by in the present case. The extracts from the website relied upon by the Department no doubt reveal that Salsar was a trader and importer of yarn. However, this, by itself cannot lead to the inference of clandestine sales by the petitioner to the societies. An enquiry would have to be carried out in an appropriate manner after providing the material relied upon by the Department to the petitioner and soliciting its responses to the same, before any conclusion to this effect is arrived at. Moreover, admittedly, the statements recorded from the co-operative societies have not been supplied to the petitioner and this also militates against the principles of natural justice. It is incumbent that a copy of such materials, including statements that are relied upon by the Assessing Officer be furnished to the petitioner,and an opportunity be grated to it to cross-examine the parties upon whose statement reliance is intended to be placed. The impugned orders are set aside.
The materials that the Assessing Officer proposes to rely upon, including statements recorded from the representatives of the co-operative societies will be furnished to the petitioner. Thereafter a notice of personal hearing be issued and the assessment completed de novo after hearing the petitioner and considering all/any objections that may be raised by it and affording an opportunity of cross-examination of persons whose statements are relied on. Let this exercise be completed within twelve (12) weeks from date of receipt of this order.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The petitioner before me is the National Handloom Development Corporation Ltd. (NHDCL) and challenges assessments for the periods 2011- 12 and 2012-13 in terms of the Tamil Nadu Value Added Tax, 2006 (in short ‘Act), both dated 09.10.2014. The NHDCL, stated to have been set up in February 1983 as a Public Sector Undertaking by the Government of India, is an autonomous body constituted under the Companies Act, 1956 in recognition of the imperative for a National Level Agency to assist the speedy development of the handloom sector. Its activities include the coordination of activities in regard to the procurement and supply of inputs at reasonable prices, augmenting the marketing efforts of the State and assisting in the upgradation of technology in the handloom sector, among others.
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