Case Law Details
Chandan Paper Stores Vs Commissioner of Commercial Taxes (Madras High Court)
Madras High Court held that assessment order passed without hearing the appellant is cannot be sustained as the same is in violation of the principles of natural justice. Matter remanded for fresh adjudication.
Facts- The appellant is the proprietor of a business concern, by name, Chandan Paper Stores, in Tirunelveli. He is a registered dealer of selling paper and other stationery items. Since the annual turnover is below Rs.50 Lakhs, the appellant sought for compounding assessment u/s. 3(4) of the Tamil Nadu Value Added Tax Act, 2006. However, the second respondent / Assessing Authority passed an assessment order determining the taxable turnover and penalty.
Conclusion- Held that the fact remains that the Assessing Authority passed the assessment order without hearing the appellant. It may be true that the appellant also to be blamed for his failure to submit the documents and appear before the Assessing Authority within fifteen days. The appellant, in his representation, dated 10.07.2021, has requested time for collection of evidence and to submit documents. As per the earlier direction of this Court, the appellant was asked to appear before the Assessing Authority on a particular date. The appellant, while submitting his explanation seeking fifteen days time, may not expect the Assessing Authority to pass an order on the expiry of the fifteen days time as mentioned in the communication dated 10.07.2021. It is for the Assessing Authority to fix a date for hearing. If the communication is received immediately on the expiry of fifteen days time asked for by the appellant, he would only expect the second respondent to fix a date for hearing, so that he would be in a position to appear before the Assessing Authority and produce the documents to substantiate his case. Only in the said circumstances, the assessment order impugned in the writ petition cannot be sustained merely because it was passed fifteen days after the expiry of the time asked for by the appellant. The appellant cannot be punished for expecting a notice fixing a date for hearing. Hence, this Court finds that the assessment order impugned in the writ petition is in violation of the principles of natural justice and finds merits in the writ petition.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
