Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 630 - HC - VAT and Sales TaxExparte assessment order - No notice served - No sale of goods, only Stock transfer - Violation of fundamental right - Relaxation in period of limitation - Applicable in order of reassessment passed by court in a writ petition - Held that:- It ought to be kept in mind by the State that when the State is imposing such a huge liability of tax of approximately ₹ 90 Lakhs, more care should have been taken by the State to the notice upon the petitioner or upon the assessee. Not only orthodox methods of service of notice should have been followed, but, over and above the orthodox methods, the State should have served the notice upon assessee by sending any employee of the State. The State has several vehicles and persons with them. When such a huge liability of tax is imposed or is going to be imposed, the State should have served the notice upon the assessee by sending any responsible employee instead of passing exparte order. When there is more liability of amount of tax, more care should have been taken by the State, at least in following the procedure. It is rightly submitted by learned counsel for both the sides that if this Court will wait for affidavit to be filed by the State and, thereafter to be decided, it will take at least four weeks' time and, therefore, without wasting the time, we hereby quash and set aside the exparte order of assessment passed as well as quash and set aside the demand notice. Matter remanded back for a fresh decision after giving adequate opportunity of being heard. As a cumulative effect of the aforesaid facts and reasons, we hereby remand the matter to the Commercial Taxes Officer, Koderma Circle, Koderma to decide afresh the tax liability, if any, of the petitioner. The relaxation of the time limit as mentioned in Subsection 2 of Section 42 which is applicable in the case of appellate order or revisional order, is also applicable whenever any order is passed in the writ petition under Article 226 of the Constitution of India. - Decided in favour of appellant.
|