2012 (6) TMI 761 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment order challenged on grounds of natural justice and proper consideration of objections.

Summary:

The petitioner, a registered dealer engaged in civil works, challenged an assessment order dated May 18, 2012, issued by the respondent. The petitioner contended that despite submitting detailed objections on December 28, 2008, and December 30, 2008, in response to a notice dated December 4, 2008, the respondent passed the assessment order without considering the objections. The respondent claimed to have sent a notice on October 30, 2008, to which the petitioner did not respond, but no such notice was found in the records. The High Court found that the assessment order violated the principles of natural justice as the objections were not considered properly. The Court quashed the assessment order and directed the respondent to reconsider the matter, giving the petitioner an opportunity to substantiate their claim. The respondent was instructed to pass a new order expeditiously, preferably within six weeks of receiving the Court's order, after considering the objections dated December 28, 2008, and December 30, 2008.

The petitioner, a registered dealer undertaking contracts with Government entities, challenged an assessment order issued by the respondent on grounds of natural justice and proper consideration of objections. The petitioner had submitted detailed objections in response to a notice dated December 4, 2008, but the assessment order was passed without due consideration of these objections. The respondent alleged sending a notice on October 30, 2008, to which the petitioner did not respond; however, no record of such notice was found. The High Court held that the assessment order violated natural justice principles by not properly considering the objections. Consequently, the Court quashed the assessment order and directed the respondent to reevaluate the matter, allowing the petitioner to support their claim. The respondent was mandated to issue a new order promptly, preferably within six weeks of receiving the Court's directive, after reviewing the objections submitted on December 28, 2008, and December 30, 2008.