Case Law Details
M. R. Constructions Vs Assistant Commissioner (ST) (Madras High Court)
The case of M. R. Constructions Vs Assistant Commissioner (ST) before the Madras High Court revolves around challenging an assessment order under the TNVAT Act. The core issue was the validity of an assessment order issued long after the initial show cause notices were responded to by the petitioner.
The petitioner, M. R. Constructions, received a show cause notice in 2015 regarding Input Tax Credit. After responding to the notice, there were no further developments until the assessment order was unexpectedly issued in 2024, nearly nine years later. The petitioner argued that they were under the impression that the proceedings had been concluded, given the silence on the matter for such a prolonged period.
Counsel for the petitioner highlighted procedural lapses due to the lack of hearings or updates from 2015 to 2024. This formed the basis for challenging the assessment order on grounds of fairness and procedural justice.
In a notable decision, the Madras High Court set aside the impugned VAT order, emphasizing the necessity for due process and a reasonable opportunity for the petitioner to present their case. The court’s directive for reconsideration includes allowing the petitioner to submit a fresh reply and ensuring a personal hearing, aiming for a fair and just outcome within a specified timeline.
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