Madras High Court
M/S.Nakoda Fashion Wear vs The Commercial Tax Officer on 7 October, 2021
W.A.No.2554 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.10.2021
CORAM
THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HON'BLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP
Writ Appeal No.2554 of 2021
and C.M.P.No.16626 of 2021
M/s.Nakoda Fashion Wear,
Represented by its Proprietor
No.34, Sundaram Pillai Street,
Purasawalkam,
Chennai – 600 007. .. Appellant
-vs-
The Commercial Tax Officer,
Purasawalkam Assessment Circle,
Chennai – 600 102. .. Respondent
Appeal under Clause 15 of Letters Patent against the order dated
15.06.2021 in W.P.No.6196 of 2017.
For Appellant : Mr.P.V.Sudakar
For Respondents : Mr. M.Venkateswaran
Government Counsel
_________
Page 1 of 8
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
JUDGMENT
(Delivered by T.S.Sivagnanam, J.)
This appeal by the writ petitioner is directed against the order dated
24.03.2021 in W.P.No.7658 of 2021.
2.The Writ Petition was filed challenging the assessment order passed
by the Respondent under the provisions of the Tamil Nadu Value Added
Tax Act, 2006 [hereinafter referred to as 'the TNVAT' for short] dated
02.01.2017 for the Assessment Year 2011-12.
3.The writ petitioner, namely, All India Metal and Alloys who had
filed four writ petitions which were dismissed by the common impugned
order dated 15.06.2021 had filed appeals against the said order in
W.A.Nos.2222, 2226, 2229 and 2242 of 2021 and those writ appeals were
allowed with certain directions. The operative portion of the order reads as
follows:
“14.The Writ Petitions were entertained in the year
2014 and an order of interim stay was granted, and the
order of interim stay continued to be in force till the
_________
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
disposal of the Writ Petitions vide order dated 15.06.2020.
15.In the light of the recent decision of the Hon'ble
Supreme Court as cited supra, one of the exceptions, which
has been drawn, for permitting an aggrieved person to
approach this Court and invoke the extraordinary
jurisdiction of this Court under Article 226 of the
Constitution of India, despite availability of an alternate
remedy, is when there is violation of principles of natural
justice. We need not labour much to investigate and
ascertain as to whether the Respondent had received the
reply dated 06.12.2013, since the Assessing Officer in the
Counter-affidavit filed in the Writ Petitions has accepted
that the reply dated 06.12.2013 was received. If such is the
case, it goes without saying that the Assessment orders
dated 26.02.2014, 26.02.2014, 27.02.2014 and 27.02.2014
passed are in violation of the principles of natural justice.
That apart, in the objections given by the Appellant dated
18.11.2013, apart from pointing that the selling-dealer’s
registration was very much valid, and that they have been
filing e-returns, the Appellant sought for 23
details/documents, which have been listed above, and the
Assessing Officer does not dispute the fact that he has
received the reply / objections dated 18.11.2013. But
without taking note of the request made by the Appellant,
_________
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
the second notice dated 03.12.2013 has been issued once
again alleging that the Appellant has purchased from the
Registration certificate cancelled dealers and in addition,
that the Appellant has not filed any proof for physical
movement of goods the assessments were completed.
16.Had the Respondent furnished the details /
documents sought for by the Appellant in their reply
/objections dated 18.11.2013 or given a reply to the said
communication, with regard to the Appellant entitlement to
seek any of or all of 23 details and documents, it would
have been a different matter?
17.However, the Respondent has virtually ignored
the reply dated 18.11.2013, wherein the Appellant, apart
from giving its preliminary objections for the revision of
assessment, has also sought for certain details and
documents. That apart, there has been a specific request
made by the Appellant in the representation 18.11.2013 to
grant an opportunity of personal hearing. This has also
been brushed aside, while issuing the second notice dated
03.12.2013. That apart, in the Assessment orders the
Assessing Officer has stated that the Appellant has not
furnished any reply to the second notice, whereas it has
been admitted in the Counter-affidavit that the reply /
objections dated 06.12.2013 has been received.
_________
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
18.Therefore, we are of the clear view that there
have been gross violation of principles of natural justice,
which would justify our stand that the Appellant is entitled
to invoke the extraordinary jurisdiction of this Court and
consequently, Writ Petitions are held to be maintainable.
19.For all the above reasons, we are inclined to
interfere the common order passed by the Learned Writ
Court and issue certain directions, so that the assessments
can be completed, after complying with the principles of
natural justice.
20.Accordingly, the Writ Appeals are allowed and
the orders passed in the Writ Petitions are set aside and the
assessment orders impugned in the writ petitions are
quashed and these matters are remitted to the Assessing
Officer and the Assessing Officer is directed to issue notice
to the Appellant to appear in-person and during their
personal appearance, the Appellant is directed to submit a
further reply, clearly specifying as to what are all
documents and details they would require and on such
written request, the Assessing Officer shall consider and
provide copies of the available details/documents, or if the
details and documents are very voluminous, the
representative of the Appellant would be entitled to peruse
the details and documents in the office of the Respondent
_________
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
and after furnishing/ perusal, within 15 days therefrom, a
fresh objection shall be given by the Appellant to the
proposals made in both the notices dated 06.11.2013 and
03.12.2013 and on receipt of the objections, the respondent
shall afford opportunity of personal hearing to the
authorised representative of the Appellant and re-do the
assessment in accordance with law.
21.On the above terms, these Writ Appeals are
allowed. No costs.”
4.Nothing has been placed before us to show that the above decision
would not apply to the facts of the present case. Therefore, we are inclined
to follow the same.
5.Accordingly, the Writ Appeal is allowed and the order passed in the
Writ Petition is set aside and the assessment order impugned in the writ
petition is quashed and the matter is remitted to the Assessing Officer and
the Assessing Officer is directed to issue notice to the Appellant to appear
in-person and during their personal appearance, the Appellant is directed to
submit a further reply, clearly specifying as to what are all documents and
_________
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
details they would require and on such written request, the Assessing
Officer shall consider and provide copies of the available details/documents,
or if the details and documents are very voluminous, the representative of
the Appellant would be entitled to peruse the details and documents in the
office of the Respondent and after furnishing/ perusal, within 15 days
therefrom, a fresh objection shall be given by the Appellant to the proposals
made in both the notices dated 25.09.2013 and 11.02.2013 and on receipt of
the objections, the respondent shall afford opportunity of personal hearing
to the authorised representative of the Appellant and re-do the assessment in
accordance with law. No costs. Consequently, connected miscellaneous
petition is closed.
(T.S.S., J.) (S.S.K., J.)
07.10.2021
Index: Yes/ No
Speaking Order : Yes/ No
cse
To
The Commercial Tax Officer,
Purasawalkam Assessment Circle,
Chennai – 600 102.
_________
https://www.mhc.tn.gov.in/judis/
W.A.No.2554 of 2021
T.S.Sivagnanam, J.
and
Sathi Kumar Sukumara Kurup, J.
cse
W.A.No.2554 of 2021
07.10.2021
_________
https://www.mhc.tn.gov.in/judis/
