IL and FS Property Management and Services Limited vs The Assistant Commissioner (CT)

B. Rajendran, J.—By consent, the Writ Petition itself is taken up for final disposal.

The Writ Petition is filed challenging the Assessment Order of the respondent dated 30.5.2014 and to quash the same.

The case of the petitioner is that the petitioner company was registered under the Tamil Nadu Value Added Tax Act, 2006 and it is engaged in the business of providing Facility Management Services, House Keeping Services, Security Services and doing minor civil works. While so, the petitioner''s company has realised Rs.5,76,41,493/- during the year 2009-2010 towards service charges and the said amount did not involve any transfer of property in goods. However, the respondent has proposed assess 10% value of the total receipts amounting to Rs.57,64,194/- at 12.5% as materials consumed which is contrary to the settled principles of law and no opportunity was given to the petitioner to file their objections. Later on, the respondent issued a notice dated 21.5.2014 providing an opportunity for personal hearing which was received by the petitioner only on 27.5.2014 at 5.30 p.m. Thereafter, without granting time, the impugned order came to be passed on 30.5.2014. Hence, the present Writ Petition.

Learned Counsel for the petitioner would submit that even though the notice calling upon the explanation of the petitioner was dated 21.5.2014, the same was served on him only on 27.5.2014 at 5.30 p.m. and the impugned order was passed before the expiry of time granted for his personal hearing. Hence, the impugned order is per se illegal and as against the principles of natural justice.

Heard the learned Special Government Pleader appearing for the respondent and I have also perused the materials available on record carefully.

On a perusal of the records, it appears that before passing the order impugned in this Writ Petition, no opportunity whatsoever has been granted to the petitioner to give his explanation for the show cause notice dated 21.5.2014 which was received by the petitioner on 27.5.2014 only.

At this stage, the learned Counsel for the petitioner would fairly submit that the petitioner is prepared to deposit 10% of the Tax amount and the matter may be remanded back to the respondent for passing a fresh order after hearing the petitioner.

The learned Special Government Pleader would agree for the same.

In view of all the above, the Writ Petition stands allowed and the impugned order of the respondent dated 30.5.2014 is hereby set aside and the matter is remanded back to the respondent on condition that the petitioner deposits 10% of the demanded tax amount as volunteered on or before 31.07.2014. No costs. Consequently, connected Miscellaneous Petition is also closed.