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2022 (2) TMI 196 - HC - VAT and Sales TaxPrinciples of natural justice - opportunity not provided to the petitioner to file its objections and contest both proceedings - evasion of tax - time limitation - it is the specific contention of the respondents that the respondents are entitled to the period of eight years prescribed under Section 42 of KVAT Act since the petitioner fraudulently evading payment of tax during the assessment year 2013-14 - HELD THAT:- It is relevant to state that the period of eight years would be available to the respondents only pursuant to passing a separate and independent order under Section 79 and it was only after passing an order under Section 79(1) that the respondent would be entitled to invoke Section 39(1) and not before that; in other words in order to claim eight years under Section 40, respondents were not entitled to pass a composite order by invoking both Sections 39 and 79, but had to necessarily pass an independent order under Section 79 after providing an opportunity to the petitioner and thereafter pass another order under Section 39 also after giving an opportunity to the petitioner. In view of the failure on the part of the respondents to follow the prescribed procedure and since no reasonable or sufficient opportunity was provided in favour of the petitioner before passing the impugned orders, thereby violating principles of natural justice, without expressing any opinion on the merits/demerits of the rival contentions and in order to give one more opportunity to the petitioner to file his objections to the notices dated 05.04.2021 and contest the proceedings, it is deemed just and appropriate to set aside the impugned orders and remit the matter back to the respondents for re-consideration afresh - petition allowed by way of remand.
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