Tvl.Lakshmi Marbles vs. The Commissioner Of Commercial

Held

The Court held that the respondents failed to furnish copies of crucial documents relied upon in the pre-assessment notice, despite the petitioner's specific requests. The Court noted that the respondents admitted to receiving 22 objections from the petitioner and that the petitioner had requested a copy of the Enforcement Wing's proposal, which was not provided. The Court found that in fairness, the respondents should have furnished at least some of the relied-upon documents or provided reasons for not doing so. The Court concluded that the impugned assessment order was passed without providing the petitioner a proper opportunity to defend themselves, thus violating the principles of natural justice. The Court set aside the impugned assessment order. The Court directed the respondents to furnish a copy of the Enforcement Wing officials' proposal and other documents relied upon in the pre-assessment notice within two weeks. Following this, the petitioner was directed to submit objections within three weeks, after which the respondents were to pass appropriate orders after affording a personal hearing.

Facts

The petitioner, Lakshmi Marbles, challenged assessment orders dated June 2, 2017, passed by the Commercial Tax Officer, Karaikudi Assessment Circle. The petitioner argued that the assessment orders were liable to be set aside because the respondents failed to provide copies of documents relied upon in the pre-assessment notice, despite repeated requests. This failure, the petitioner contended, prevented them from submitting a suitable reply and violated principles of natural justice. The respondents, however, argued that all relevant documents were cited in the pre-assessment notice, and the petitioner's business was inspected. They claimed the petitioner agreed to reconcile omissions and pay tax, and that the request for documents was a delaying tactic. The respondents also asserted that a personal hearing was afforded.

Key Issues

1. Whether the assessment order dated 02.06.2017, passed by the second respondent, is liable to be quashed for failure to furnish copies of documents relied upon in the pre-assessment notice, thereby violating the principles of natural justice? Petitioner's arguments: The petitioner contended that the respondents failed to provide copies of documents that were relied upon in the pre-assessment notice, despite specific requests made on December 8, 2016. This omission prevented the petitioner from submitting a proper and detailed reply to the pre-assessment notice. Consequently, the impugned assessment order, which confirmed the proposals without providing the requested documents, is unlawful and violates the principles of natural justice. The petitioner relied on the principle that a fair opportunity to respond is fundamental to natural justice. Respondents' arguments: The respondents argued that all documents were cited in the pre-assessment notice itself. They also stated that the petitioner's business was inspected, and purchase omissions were pointed out, with the petitioner agreeing to reconcile and pay tax if necessary. The respondents further contended that furnishing the requested documents was an empty formality, and the petitioner could have submitted a detailed reply without them. They also claimed a personal hearing was provided, negating any violation of natural justice.