Sarda Agro Oils Limited vs Commercial Tax Officer, Special Commodities Circle

Ramesh Ranganathan, J.—The assessment order passed by the respondent dated 28.03.2014 is under challenge in this Writ Petition, among others, on the ground of violation of principles of natural justice. The petitioner, a Public Limited Company, engaged in the manufacture and sale of edible oils, is a registered dealer on the rolls of the respondent. For the assessment year 2009-2010 the respondent issued a notice dated 20.06.2010 proposing to adjust the input tax credit in accordance with the formula prescribed under Rule 20(6) of the Andhra Pradesh Value Added Tax Rules, 2005. Thereafter, a revised show cause notice was issued on 18.01.2014 to which the petitioner submitted their reply on 01.03.2014, and a copy thereof was delivered at the office of the respondent on 07.03.2014. A copy of the said letter dated 01.03.2014, placed before us, contains an endorsement informing the petitioner that they should attend the personal hearing on 14.03.2014. Sri S. Vivek Chandrasekhar, learned counsel for the petitioner, would submit that, despite receipt of the petitioner''s reply to the show cause notice, the respondent had failed to consider the same and, on the other hand, had observed in the assessment order, that they had not filed any written objections. Learned counsel would contend that failure on the part of the respondent to consider the petitioner''s written objections dated 01.03.2014, before passing the assessment order, is in violation of principles of natural justice.

Sri M. Govind Reddy, learned Special Standing Counsel for Commercial Taxes, would, however, contend that, despite two opportunities being granted to the petitioner to attend the personal hearing, they had failed to do so. The fact that the petitioner had failed to attend the personal hearing does not absolve the respondent of his obligation to consider their written objections dated 01.03.2014 and only, thereafter, to pass the assessment order. The impugned assessment order, which was passed without considering the petitioner''s objections in their letter dated 01.03.2014, is in violation of principles of natural justice and is, accordingly, set aside.

Sri S. Vivek Chandrasekhar, learned counsel for the petitioner, would seek a personal hearing again. Bearing in mind that the petitioner did not avail the opportunities granted earlier, we consider it appropriate to direct the respondent to intimate the petitioner of the date on which they would be personally heard. In case the petitioner does not attend the personal hearing on the stipulated date, it is open to the respondent to proceed and pass assessment orders afresh in accordance with law, after considering the written objections filed by them on 01.03.2014. The Writ Petition stands disposed of accordingly. The miscellaneous petitions pending, if any, shall also stand disposed of. There shall be no order as to costs.