Tvl.Abi And Co. vs. The Commissioner Of Commercial Taxes

Facts

The petitioner, Tvl. ABI & Co., a business registered under GST, filed a writ petition challenging an assessment order for the tax period 2018-2019, passed by the Assistant Commissioner, Tuticorin – II Assessment Circle. The petitioner stated that due to the COVID-19 pandemic, they were unable to continue their business and began filing nil returns. While the respondents assessed the tax for the period 2018-2019 and the petitioner was paying it, the petitioner failed to attend the enquiry proceedings due to ill health, despite being provided an opportunity. The petitioner sought one more opportunity to present their case.

Held

The Court held that the petitioner is entitled to one more opportunity to attend the enquiry proceedings. The reasoning was based on the petitioner's inability to attend the original enquiry due to ill health, which was compounded by the COVID-19 pandemic. The Court acknowledged the petitioner's submission that they were paying the assessed tax but failed to avail the opportunity for enquiry. The ratio decidendi is that principles of natural justice should be upheld, and a party should not be denied an opportunity to be heard due to circumstances beyond their control, especially when it pertains to tax assessments. The Court quashed the impugned assessment order dated 01.12.2022 and directed the respondents to grant the petitioner one more opportunity. The petitioner was instructed not to seek any adjournment and to attend the enquiry without fail. The respondents were directed to pass orders based on the objections and enquiry within three months from the date of receipt of the order.

Key Issues

1. Whether the petitioner is entitled to a fresh opportunity to attend the enquiry proceedings and present their objections concerning the assessment order for the tax period 2018-2019, given their inability to attend due to ill health and the COVID-19 pandemic. Petitioner's contention: The petitioner argued that their failure to attend the enquiry was due to unavoidable circumstances, specifically ill health exacerbated by the COVID-19 pandemic, and therefore, they should be granted another opportunity to be heard. They relied on the principle of natural justice. Revenue's contention: The judgment does not record any specific arguments from the respondents (Revenue).