Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 195 - HC - VAT and Sales TaxViolation of principles of natural justice - validity of assessment order - at the time when the notice was served on the security guard, the area of the petitioner's office was a containment zone and all staff of the petitioner were working from home - effective opportunity of being heard was not made available to the petitioner - HELD THAT - The extraordinary situation demand exceptional approach. Functioning of establishments during lockdown or in containment zones during covid-19 pandemic has been peculiar and extraordinary. Those who were beyond the limits of the containment zones were not permitted to enter into the containment zones, while those who are inside the containment zones, were not permitted to step out of the containment zones. Thus the admitted service of notice upon the security guard of the petitioner's office building, in the strict sense of the term, cannot be treated as an effective service of notice for the purpose of complying with the directions under Ext.P2 for granting a reasonable opportunity of being heard. Even to move into the office building of the petitioner, there was a restriction in the form of total lockdown in the State. Hence for reasons beyond the control of the petitioner, there was a failure to grant a reasonable opportunity of being heard, though for no fault of the assessing officer also - In the nature of circumstances in which the petitioner was served with the notice on 22.09.2020, petitioner was in a disadvantaged position and hence this Court finds that there was no effective or reasonable opportunity of being heard granted to the petitioner. Interests of justice demand that petitioner be granted one more opportunity of being heard and to produce the required documents if any, to complete the assessment afresh - While setting aside Ext.P1, it is imperative that petitioner should not be permitted to further delay the assessment of the proceedings. Petition allowed.
Issues:
Challenge to assessment order on grounds of violation of principles of natural justice due to Covid-19 pandemic circumstances. Analysis: The petitioner challenged the assessment order dated 25.11.2020 on the grounds of violation of principles of natural justice under Article 226 of the Constitution of India. The petitioner contended that although a notice was issued by the Assessing Officer following a remand order dated 01.01.2019, it was received by the security guard of the petitioner during a time when the office area was a containment zone due to the Covid-19 pandemic. The petitioner argued that despite the technical service of notice, there was no effective opportunity for the petitioner to be heard due to the unique situation arising from the pandemic. The Tribunal had allowed the petitioner's appeal and remitted the case to the assessing authority, directing the petitioner to produce documents within a specified time limit. The petitioner claimed to have complied with this directive by submitting the documents to the Assessing Officer as per the appellate order. However, the petitioner raised concerns about the notice being served during a period of complete lockdown in the State of Maharashtra, where the petitioner's office was located, making it practically impossible for the petitioner to be aware of the service of notice. The Court acknowledged the extraordinary circumstances prevailing in Mumbai, Maharashtra, during the Covid-19 pandemic, with complete lockdowns and work-from-home arrangements in place. Despite the technical service of notice on the security guard, the Court held that it did not constitute an effective service of notice considering the restrictions and limitations imposed by the lockdown situation. The Court emphasized the need for an exceptional approach in such unprecedented circumstances, where the petitioner was disadvantaged due to factors beyond their control. In light of the peculiar situation and the failure to grant a reasonable opportunity of being heard to the petitioner, the Court set aside the assessment order and granted the petitioner another opportunity to be heard and produce necessary documents for the assessment to be completed afresh. The Court fixed a specific date for the petitioner to appear before the assessing authority and instructed expedited proceedings to ensure timely resolution of the assessment matter. The writ petition was allowed accordingly.
|