Justice Anitha Sumanth held that the dealer be afforded reasonable opportunity of being heard prior to framing of an assessment. Such reasonable opportunity, Courts have consistently held, must include an opportunity of personal hearing. Admittedly, in the present case, the petitioner has not been heard personally prior to the impugned orders having been passed.

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VAT Dealer be provided with Reasonable Opportunity of being heard prior to Assessment Order: Madras High Court [Read Order]

By Taxscan Team – On April 16, 2021 8:23 pm
VAT Dealer – Reasonable Opportunity – Assessment Order- Madras High Court – taxscan

The Madras High Court held that the dealer must be afforded reasonable opportunity of being heard prior to framing of an assessment.

The petitioner, M/s.Sham Interiors challenged two orders of assessment, both dated January 18, 2021 for the periods 2015-16 and 2016-17 along with notices for attachment, which are garnishee notices issued to the Revenue Administrator, Mahe attaching the properties of the partners of the firm in Mahe Region for the arrears of tax and penalty due to the Government under the provisions of the Puducherry Value Added Tax Act, 2007 in terms of Section 40 thereof read with Section 174 of the Puducherry Goods and Service Tax Act, 2017, so as to prevent alienation of the said properties.

The impugned orders of assessment have been served on the petitioner and admittedly, the petitioner has a period of 60 days to file first appeal before the first Appellate Authority constituted under the Act. The impugned notices for attachment have been issued even prior to the expiry of the appeal period, and are, in my view, premature.

The single judge bench of Justice Anitha Sumanth held that the dealer be afforded reasonable opportunity of being heard prior to framing of an assessment. Such reasonable opportunity, Courts have consistently held, must include an opportunity of personal hearing. Admittedly, in the present case, the petitioner has not been heard personally prior to the impugned orders having been passed.

Therefore, the court while setting aside the impugned orders. The petitioner will appear before the respondent on 15th of April 2021 at 10.30 a.m without expecting or anticipating any further notice in this regard. After hearing the petitioner and considering all materials that may be filed in support of the petitioner’s contention, orders of assessment shall be passed de novo within a period of 4 weeks from the date of first hearing.

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