Mangaly Industries (P) LTD vs. State Tax Officer
Facts
The petitioner, Mangaly Industries (P) Ltd, challenged an order (Ext.P6) passed under Section 21 of the KVAT Act by the State Tax Officer, SGST Department. The petitioner contended that the order was illegal and violative of natural justice. Specifically, the petitioner had, via Ext.P4 dated March 26, 2019, requested an opportunity to be heard regarding proposed assessment details. However, Ext.P6, dated March 25, 2019, was allegedly prepared and signed by the respondent after receiving Ext.P4, and was ante-dated. The petitioner argued that a hearing would have allowed them to present their case. The respondent filed a statement, arguing no violation of natural justice occurred.
Held
The Court held that Ext.P6 was violative of the principles of natural justice. The Court noted that the petitioner's request for a hearing (Ext.P4) was clear, and Ext.P5 indicated that the order (Ext.P6) was dispatched on March 26, 2019. The discrepancy between the dates in Ext.P6 and the correspondence, along with the dispatch date, suggested that procedural fairness was not followed in finalizing the order. Consequently, Ext.P6 was set aside on the ground of violating natural justice. The Court directed the petitioner to appear before the respondent on August 16, 2019, for the completion of the assessment, which was to be finalized on or before August 31, 2019.
Key Issues
1. Whether the order Ext.P6, passed under Section 21 of the KVAT Act, is illegal and violative of the principles of natural justice, specifically concerning the opportunity of being heard? The petitioner argued that the order was passed in violation of natural justice as it was issued after their request for a hearing (Ext.P4) was made, and the order itself was ante-dated, suggesting procedural unfairness. They contended that an opportunity to be heard would have enabled them to prove their case. The respondent argued that there was no violation of the principles of natural justice, as indicated by the operative portion of Ext.P6 and the record.
Sections Cited
Section 21
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Cause title — parties, addresses and appearances
JUDGMENT The petitioner challenges Ext.P6 order made under Section 21 of KVAT Act as illegal and violative of principles of natural justice. The petitioner, through Ext.P4 letter dated 26.03.2019, requested respondent an opportunity of being heard on the proposed assessment details. Ext.P6 is dated 25.03.2019 and the grievance of petitioner is that after receiving Ext.P4, Ext.P6 is prepared ante-dated and signed by the respondent. The petitioner if was given one opportunity the petitioner could have proved the case the petitioner and thereafter orders a
The judgment continues below.
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Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.