Allowed

M/S. N.v.Chettiar v. the Asst. Commissioner & Another

Kerala HC10 Dec 2010WP(C)/36095/2010

Case brief

AI extract

What is this about?

The High Court allowed a writ petition challenging an assessment order under Section 25(1) of the KVAT Act. It held that the order was illegal as it was finalized without affording the petitioner a personal hearing despite objections, violating principles of natural justice. The assessment was quashed and remanded.

What did the court decide?

Ext.P3 assessment order quashed; matter remanded for fresh orders within one month after personal hearing.

M/S. N.v.Chettiar Vs the Asst. Commissioner & Another — GST and Indirect Tax | Kerala HC (2010)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT :

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THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM

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FRIDAY, THE 10TH DECEMBER 2010 / 19TH AGRAHAYANA 1932

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WP(C).No. 36095 of 2010(J)

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--------------------------

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PETITIONER:

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M/S. N.V. CHETTIAR, 7/773, S.M. STREET, KOZHIKODE, REPRESENTED ITS MANAGING PARTNER SRI.V. THYAGARAJAN.

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BY ADVS. SRI.ANIL D. NAIR

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SMT.NIVEDITA A.KAMATH

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RESPONDENTS:

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1. THE ASSISTANT COMMISSIONER, SPECIAL CIRCLE-II, COMMERCIAL TAXES, KOZHIKODE 673001.

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2. THE STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES SECRETARIAT, THIRUVANANTHAPURAM 695001.

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BY SENIOR GOVERNMENT PLEADER, SRI.C.K.GOVINDAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/12/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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C.K.ABDUL REHIM, J

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W.P(C) No.36095 of 2010-J

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Dated this the 10^th day of December, 2010.

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J U D G M E N T

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Ext.P3 order of assessment completed under Section 25(1) of the Kerala Value Added Tax Act (KVAT Act), with respect to the year 2009-10, is under challenge in this writ petition. According to the petitioner the assessment was finalized in flagrant violation of the procedure contemplated under the statue and also in violation of principles of natural justice. Hence the assessment is challenged without resorting to statutory remedy by way of appeal.

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It is pointed out that after filing of the objections to the pre-assessment notice, the matter was finalized without affording any opportunity of hearing to the petitioner. It is contended that a personal hearing as contemplated under the statute, after filing of the objections to the proposal, is not an empty formality and that any failure to provide such an opportunity will vitiate the order

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W.P(C) No.36095 of 2010-J 2

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of assessment. In this regard the petitioner points out a recent decision of this Court in Suzion Infrastructure

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Service Ltd. V. Commercial Tax Officer (W.C), Ernakulam (2010(3) KHC 299 (Ker ).

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Going by contents of the impugned order, it is not reflected that any such opportunity of hearing was afforded after filing of the objections. Learned Government Pleader appearing on behalf of respondent also concede these aspects. Therefore I of the view that the assessment order is unsustainable in the eye of law.

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Accordingly the writ petition is allowed and Ext.P3 is hereby quashed. The matter is remanded back to the 1^st respondent for passing fresh orders after affording an opportunity of personal hearing to the petitioner. Orders in this regard shall be issued by the 1^st respondent as early as possible, at any rate within a period of one month from the date of receipt of a copy of this judgment.

Sd/-

C.K.ABDUL REHIM

JUDGE

//True Copy//

M/S. N.v.Chettiar v. the Asst. Commissioner & Another

Case brief

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What did the court decide?

M/S. N.v.Chettiar v. the Asst. Commissioner & Another

Case brief

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What did the court decide?

What the court decided

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