M. S. Distributors Vs Office of The Commercial Tax Officer (Madras High Court)
In a significant ruling, the High Court has set aside an order issued by tax authorities against a petitioner, citing a clear violation of the principles of natural justice. The decision underscores the judiciary’s insistence on due process in tax adjudication, particularly the right to be heard.
The case, heard by the High Court, involved a petitioner who challenged an order issued under Section 73 of the relevant Act. Mr. P. Pranav Jain, learned counsel for the petitioner, argued that the respondents – the tax authorities – had failed to provide adequate opportunity for a personal hearing before passing the impugned order. Mr. T.N.C. Kaushik, learned Additional Government Pleader (T), appeared for the respondents. With the consent of both parties, the main Writ Petition was taken up for final disposal at the admission stage.
According to the petitioner’s counsel, the chronology of events began with a show cause notice issued on May 12, 2023, requiring a reply by May 31, 2023. Notably, this initial notice reportedly lacked any mention of a date and time for a personal hearing. A subsequent show cause notice, dated September 27, 2023, also omitted these crucial details.
