Case Note & Summary
The appellant, ABB India Ltd., challenged assessment orders for the year 2013-14 under the Karnataka Value Added Tax Act, 2003. After filing objections to a show cause notice, the assessing officer issued a notice fixing a personal hearing on 12.02.2015. The appellant sought an adjournment, which was refused without reasons. The hearing was concluded without the appellant's participation, and on the next day, 13.02.2015, an assessment order was passed imposing a tax liability of over Rs. 18 crores. The appellant filed writ petitions, which were dismissed by the Single Judge, who permitted the appellant to file an appeal before the first appellate authority with a condition to deposit 30% of the demand. The Division Bench held that the refusal of adjournment without reasons and the passing of the order the next day without the appellant's participation violated principles of natural justice. The court set aside the Single Judge's order and the assessment order, remanding the matter to the assessing officer for fresh consideration after giving a reasonable opportunity of hearing, including the right to seek adjournment if necessary.
Headnote
A) Natural Justice - Personal Hearing - Sufficient Opportunity - Karnataka Value Added Tax Act, 2003 - The court considered whether the refusal of adjournment without reasons and passing of assessment order the next day without participation of the assessee violated principles of natural justice - Held that the opportunity of hearing was not sufficient and the matter should be remanded for fresh hearing (Paras 1-5).
Issue of Consideration
Whether the opportunity of personal hearing afforded to the appellant was sufficient and whether the principles of natural justice had been complied with.
Final Decision
The writ appeals are allowed. The order of the learned Single Judge dated 5.3.2015 in W.P.Nos.8701-8710/2015 is set aside. The assessment order dated 13.02.2015 is also set aside. The matter is remanded to the assessing officer for fresh consideration after giving a reasonable opportunity of hearing to the appellant, including the right to seek adjournment if necessary. The appellant is directed to appear before the assessing officer on 30.03.2015.
Law Points
- Natural justice
- Personal hearing
- Sufficient opportunity
- Adjournment
- Assessment order
- Karnataka Value Added Tax Act
- 2003
Case Details
2015 LawText (KAR) (04) 21
Writ Appeal Nos.957-966/2015 (T-RES)
K.P. Kumar, Senior Counsel; Sandeep Huilgol (M/s King & Partridge) for appellant; K.M. Shivayogiswamy, AGA for respondent
ABB India Ltd. (formerly known as ABB Limited)
The Deputy Commissioner of Commercial Taxes, (Audit) – 6.2 DVO-06
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ appeals against dismissal of writ petitions challenging assessment order under KVAT Act.
Remedy Sought
Setting aside of the assessment order and the order of the learned Single Judge.
Filing Reason
Alleged violation of principles of natural justice as personal hearing was not properly afforded.
Previous Decisions
The learned Single Judge dismissed the writ petitions but permitted the appellant to file an appeal before the first appellate authority with a condition to deposit 30% of the demand.
Issues
Whether the opportunity of personal hearing was sufficient.
Whether principles of natural justice were complied with.
Submissions/Arguments
Appellant argued that refusal of adjournment without reasons and passing order the next day without participation violated natural justice.
Respondent argued that the appellant had an alternative remedy of appeal.
Ratio Decidendi
The opportunity of personal hearing was not sufficient as the adjournment was refused without reasons and the assessment order was passed the next day without the appellant's participation, violating principles of natural justice.
Judgment Excerpts
The short question involved in these appeals is as to whether the opportunity of personal hearing afforded to the petitioner/appellant was sufficient or not; and as such whether, in the facts of the present cases, the principles of natural justice had been complied with.
On the said date, an adjournment was sought by the appellant, which was refused without assigning any reason for not granting the adjournment.
In our view, the opportunity of hearing which was given to the appellant was not a sufficient opportunity and the principles of natural justice have not been complied with.
Procedural History
The appellant filed objections to show cause notice. Assessing officer issued notice for personal hearing on 12.02.2015. Adjournment sought and refused. Hearing concluded without appellant's participation. Assessment order passed on 13.02.2015. Appellant filed writ petitions (W.P.Nos.8701-8710/2015) which were dismissed by Single Judge on 5.3.2015. Appellant filed these writ appeals.
Acts & Sections
- Karnataka Value Added Tax Act, 2003:
- Karnataka High Court Act: Section 4
