P.T.Jose vs. The Deputy Commissioner [Assessment]
Facts
The petitioner, P.T. Jose, proprietor of M/s. Rose Poultry Farm, was undergoing assessment under Section 25 of the Kerala Value Added Tax (KVAT) Act. During this process, he received a notice under Section 95 of the KVAT Act, requiring him to produce his books of account. The petitioner submitted an application (Ext.P3) requesting an extension of time, citing his accountant's severe illness. However, the petitioner contends that the impugned assessment order (Ext.P4) was passed without considering his request for time or rejecting it.
Held
The Court held that the impugned assessment order (Ext.P4) was passed without granting the petitioner necessary time or properly considering his application (Ext.P3) for an extension to produce his books of account. The Court found that the assessment order was issued despite the petitioner's communication seeking time due to his accountant's illness. Consequently, the Court quashed and set aside the impugned order. The matter of assessment under the KVAT Act was remitted back to the 1st respondent (The Deputy Commissioner [Assessment]) for a fresh decision. The petitioner was directed to appear before the 1st respondent on 26.08.2021 at 11 am and cooperate with the proceedings. The 1st respondent was directed to complete the assessment within one month from the petitioner's appearance.
Key Issues
1. Whether the impugned assessment order, passed under Section 25 of the KVAT Act, is liable to be quashed for failure to consider the petitioner's application for time extension (Ext.P3) under Section 95 of the KVAT Act? Petitioner's Argument: The petitioner argued that the assessment order was passed arbitrarily and without due process, as his request for time to produce books of account, necessitated by his accountant's illness, was not considered. He relied on the principle of natural justice, which mandates that a party's request for time should be considered before passing an adverse order. Revenue's Argument: The learned Senior Government Pleader appearing for the respondents opposed the petition. The judgment does not record specific arguments made by the revenue regarding the consideration of the petitioner's application for time.
Sections Cited
Section 25, Section 95
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Cause title — parties, addresses and appearances
JUDGMENT
Heard both sides.
Learned counsel appearing for the petitioner submits that during the course of assessment under Section 25 of the KVAT Act, the petitioner was served with a notice under Section 95 of the said Act, directing him to produce books of account for the concerned assessment year and vide application at Ext.P3, the petitioner sought time for compliance by stating that his accountant is bedridden due to severe illness. However, according to the learned counsel appearing for the p
The judgment continues below.
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