2019 (9) TMI 1582 - HC - VAT and Sales Tax

Violation of principles of natural justice - Seeking direction declaring the action of the 1st Respondent in passing the Audit Assessment Proceedings dated 05.08.2019 under the A.P. VAT Act - period 2014-15 to 2016-17 - HELD THAT - Having regard to the facts and submissions and the issues raised in the Writ Petition which require detailed examination on merits the impugned order can be set aside and the matter may be remanded to the 1st respondent for passing orders afresh as such a course sub-serves the ends of justice. The matter is remanded to the 1st respondent for passing orders afresh - Petition allowed by way of remand.

Summary

Issues:
1. Challenge to Audit Assessment Proceedings under A.P. VAT Act for the tax period 2014-15 to 2016-17 as arbitrary, contrary to law, without jurisdiction, and in violation of natural justice.
2. Dispute regarding service of notice and opportunity for personal hearing before passing the impugned order.

Analysis:
1. The petitioner, a private limited company engaged in power supply, challenged the Audit Assessment Proceedings dated 05.08.2019 under the A.P. VAT Act for the tax period 2014-15 to 2016-17. The petitioner contended that the proceedings were arbitrary, contrary to the law, without jurisdiction, and violated principles of natural justice. The petitioner argued that penalty levied was incorrect as per circulars and that proper notice and opportunity for hearing were not provided before passing the impugned order. The learned counsel for the petitioner emphasized that the impugned order should be set aside, and the matter remanded for fresh orders in accordance with the law.

2. The Government Pleader for Commercial Taxes did not dispute the facts but argued that there was deemed service of notice as attempts were made to serve notice, and the notice sent to the last known address was returned unserved. However, the court found that detailed examination on merits was necessary. The court held that the impugned order should be set aside, and the matter remanded to the 1st respondent for passing fresh orders to serve the ends of justice. The court directed the petitioner to file objections within two weeks, and the 1st respondent to fix a date for personal hearing after the specified period to pass orders afresh in strict accordance with the law.

In conclusion, the High Court allowed the Writ Petition, setting aside the impugned proceedings and remanding the matter for fresh orders. The court emphasized the importance of following the established legal procedures, including providing notice and opportunity for a personal hearing. The court's decision aimed to ensure justice and adherence to the law in the proceedings related to the Audit Assessment under the A.P. VAT Act.