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2019 (1) TMI 163 - HC - VAT and Sales TaxLevy of tax - maintenance work - payment of wages for maintaining the canal which is pure labour work - imposition of penalty - opportunity of personal hearing not provided - scope of Circular No.7 of 2014 - principles of natural justice - Held that:- Needless to say that when a notice of proposal was given in writing, it is for the petitioner to give a reply in writing - In this case, the petitioner has not made any such reply. However, apart from imposing tax, the Assessing Officer has also imposed penalty at the rate of 150% under Section 22(4) of the said Act. It is true that the notice of proposal indicated that the petitioner may appear before the Assessing Officer at his office on the date of filing their objection and failure to file the written objection or to appear for personal hearing within the specified date, will result in passing orders confirming the proposal. Therefore, it is evident that the Assessing Officer has not indicated any date of personal hearing even in the absence of any reply filed by the petitioner, more particularly, when the Assessing Officer has chosen to impose penalty. Circular No.7 of 2014 - Held that:- This Court has considered the scope of the above circular in very many cases and observed that it is the duty of the Assessing Officer to provide such personal hearing. In this case, as it has not been done, this Court is inclined to remit the matter back to the Assessing Officer for redoing the assessment, however, subject to the condition that the petitioner shall pay 15% of the tax liability. Petition allowed by way of remand.
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