Tvl.Kani Industrial Works vs. The State Of Tamil Nadu
Held
The Court held that the impugned order dated 04.11.2019 was liable to be set aside. The reasoning was based on the fact that the order was a non-speaking order, failing to consider the petitioner's detailed objections and the legal precedents cited therein. Furthermore, the Court found that the petitioner's request for a personal hearing was not considered before passing the order, which constituted a violation of the principles of natural justice. The Court observed that these infirmities in the decision-making process vitiated the impugned order. Consequently, the Court set aside the order and granted liberty to the respondents to re-do the assessment after affording an opportunity of personal hearing to the petitioner.
Facts
The petitioner, Tvl. Kani Industrial Works, filed a writ petition challenging an order dated 04.11.2019 passed by the Assistant Commissioner (CT), Madurai. The impugned order required the petitioner to reverse Input Tax Credit (ITC) by invoking Section 19(5)(C) of the Tamil Nadu Value Added Tax Act, 2006. The petitioner contended that the order was passed without providing any reasons and without affording a personal hearing, despite a specific request made by the petitioner. The petitioner had submitted a detailed objection on 11.04.2019, relying on several judgments, none of which were considered in the impugned order.
Key Issues
1. Whether the impugned order dated 04.11.2019, passed by the Assistant Commissioner (CT), is liable to be quashed for being a non-speaking order and for non-consideration of the petitioner's objections and request for personal hearing, thereby violating the principles of natural justice, under Section 19(5)(C) of the Tamil Nadu Value Added Tax Act, 2006? The Petitioner argued that the impugned order was passed without any application of mind, failed to consider their detailed objections and the judgments relied upon, and crucially, denied a personal hearing despite a specific request. This, the petitioner contended, violated the principles of natural justice and rendered the order illegal. The Revenue did not record any specific arguments in the judgment.
Sections Cited
Section 19(5)(C), Section 27(4)(ii)
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 11.10.2022 CORAM THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P(MD).No.1328 of 2020 Tvl.Kani Industrial Works, Represented by its Karta: K.Thirumalaikani, No.226-A, South Madurai Station Road, Madurai-625 009. ... Petitioner
Vs. 1.The State of Tamil Nadu, Represented by the Secretary to the Government, Fort St.George, Chennai-9. 2.The Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai-5. 3.The Assistant Commissioner (CT), Kamarajar Salai Circle, Madurai-20. ...Respondents Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, calling for the records on the file of the 3rd Respondent in TIN No.33984820598/2008-09, dated 04.11.2019 and quash the same as illegal, against the Principles of Natural Justice and 1/5 https://www.mhc.tn.gov.in/judis against the provisions of 19 of the Tamil Nadu Value Added Tax Act, 2006 as substituted by Amendment Act 5 of 2015. For Pe
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