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2014 (11) TMI 878 - HC - VAT and Sales TaxSettlement of arrears of tax - TNVAT / TNGST - Deferral scheme of sales tax - Cancellation of scheme and demand of tax for the entire period - option of settlement of case - Held that:- we have seen as to how the Settlement Act works and now the issue to be considered is as to whether the petitioners applications were dealt with as per the procedure contemplated under the Act. Before proceeding further, it has to be pointed out that the applications filed by the petitioners were kept pending for two years and there is no reason assigned in the counter affidavit for such a long delay and the delay remains unexplained. The issue to be decided at the first instance is whether these applications were verified as per the provisions of Section 6(1). It is only thereafter the question of considering the further amount payable would arise under Section 6(2). This again is a procedural infirmity, which goes to the root of the matter. In a case, where the designated authority is not in possession of the relevant record, obviously he has to direct the petitioner/applicant to produce the records. In such circumstances, an opportunity of personal hearing is inevitable and in fact the disputed question of facts can very well be thrashed out if the assessee is called upon by the designated authority to state as to how they computed the amount based on their books of accounts or records. Therefore, though the statute does not prohibit an opportunity of personal hearing while considering the application under Section 6(1), going by the scheme of the Act, there is no error on the part of the designated authority to afford an opportunity of personal hearing so as to ensure fairness and transparency in procedure and also to satisfy the cardinal rule, Audi alteram partem. In view of the above procedural defects, the impugned orders passed by the designated authority rejecting the petitioner's applications are liable to be set aside with a direction to the designated authority to re-consider the entire matter in terms of the scheme of the Act.
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