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2015 (3) TMI 479 - HC - VAT and Sales TaxConstitutional validity of Section 29(7) of the Punjab Value Added Tax Act, 2005 - power to amend amend assessment - no opportunity of hearing is provided to the assessee before grant of approval by the Commissioner - Violation of Article 19(1)(g) of the Constitution of India - Violation of principle of natural justice - Held that:- A plain reading of Section 29 (7) of the PVAT Act shows that the designated officer within a period of three years from the date of assessment is authorised to amend assessment order made under Sub section 2 or 3 of Section 29 of the PVAT Act if he discovers that there has been under-assessment of tax payable by a person as a result of fraud or willful neglect or misrepresentation of facts on the part of such person or part of the turnover has escaped assessment. However, the amendment of an assessment order is subject to seeking prior permission from the Commissioner and after affording an opportunity of hearing to the affected person by the designated officer. Section 29(7) of the PVAT Act nowhere envisages personal hearing to be provided to the dealer before granting of prior permission by the Commissioner. The grant of permission is an administrative function and cannot be termed to be quasi judicial in nature. The prior permission of the Commissioner has been incorporated to safeguard the interest of the dealer so that the designated officer, where he is of the opinion that action is required to be taken, seeks approval of the higher officer of the rank of Excise and Taxation Commissioner. The dealer is provided with an opportunity of hearing at the time when the designated officer after getting approval from the Commissioner proceeds to amend the assessment order. Under the circumstances, the provision in question cannot be termed to be unreasonable, unconstitutional and ultravires. - approval given by the Commissioner and the notices issued by the concerned authority for amending the assessment order cannot be faulted. - Decided against assessee.
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