Case Law Details
Sailesh Chandra Dutta Vs Assistant Commissioner (Calcutta High Court)
Calcutta High Court quashes garnishee proceedings and original assessment order passed in violation of natural justice against which no appeal preferred
Hon’ble Division Bench of the Hon’ble Calcutta High Court in the matter Sailesh Chandra Dutta Vs. Assistant Commissioner, Raiganj Charge, Raiganj & Ors M.A.T. 1062 of 2022 in its judgment dated 13.07.2022 quashed the garnishee proceedings in a matter wherein the assessment order dated 21.05.2019 had attained finality and where the garnishee proceedings were initiated by the Department to recover the tax dues.
Hon’ble Calcutta High Court noted that the explanation offered by the appellant to the show cause notice has not even been referred to in the final order dated 21.05.2019. It was held that such an action is incorrect as even an ex parte order, should be a reasoned order after noting the reply given by the assessee to the show cause notice.
It was held that one more opportunity should be granted to the assessee. However, such opportunity shall be subject to payment of approximately sixty percent of the disputed tax amount (including tax amount already paid). Once the said amount is paid, then the appellant shall be entitled to treat the final order dated 21.05.2019 as a show cause notice and submit their objections within 7 days from the date on which the payment is effected. On receipt of the said reply/objections, the concerned authority was directed to adjudicate the matter and pass fresh order on merits and in accordance with law. Till such orders are passed, it was directed that no coercive action should be initiated against the appellant for recovery of the balance amount. The concerned adjudicating authority was further directed to discuss the case of the appellant’s authorized representative by affording an opportunity of hearing and pass a reasoned order on merits and in accordance with law. The assessee was directed to cooperate in the adjudication and no adjournment shall be granted. The matter was disposed off accordingly.
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