Reasonable opportunity of being heard prior to framing of an assessment must be provided as per Section 24(3) of the Puducherry GST Act

The Madras High Court has ruled that taxpayers must be given a reasonable opportunity to be heard before any tax assessment is finalised under Section 24(3) of the Puducherry GST Act. In this case, assessment orders and attachment notices were issued prematurely, before the taxpayer's appeal period had expired. The court emphasised the importance of procedural fairness in tax proceedings.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 29.03.2021
 
CORAM

THE HONOURABLE DR. JUSTICE ANITA SUMANTH

W.P. Nos.7933 and 7928 of 2021
and WMP Nos.8479, 8481, 8484 and 8486 of 2021

M/s.Sham Interiors
rep. by its Managing Partner
Sameer Ahmed
Main Road IV/1949/1, Sham Complex,
Mahe – 673 310
.... Petitioner in both W.Ps
 
Vs

The Assistant Commercial Tax Officer
Commercial Taxes Department,
Mahe, Puducherry.
 …Respondent in both W.Ps

Prayer in W.P.No.7933 of 2021: Writ Petition filed under Article 226 of the Constitution of India praying to Writ of Certiorari calling for the records on the file of the respondent herein his assessment order No.34670006642/ACTO (Mahe)/2020-21/10 dated 18.01.2021 for the year 2015-2016 and consequential notices vide (1) No.TIN34670006642/CTD/ACTO/Mahe/2020-21/76 Dated

23.02.2021 (2) No.TIN34670006642/CTD/ACTO/Mahe/2020-21/81 Dated
23.02.2021 and (3) No.TIN34670006642/CTD/ACTO/Mahe/2020-21 Dated
23.02.2021 and quashing the same.

For Petitioner : Mr.P.suresh
 For Respondent : Mr.J.Kumaran
 Additional Government Pleader (Pondy)

C O M M O N O R D E R

Mr.J.Kumaran, learned Additional Government Pleader (Puducherry) accepts notice for the respondent and is armed with instructions to proceed with the matter. Hence, by consent of both sides, these Writ Petitions are disposed finally even at the stage of admission.

2. The petitioner challenges two orders of assessment, both dated 18.01.2021 for the periods 2015-16 and 2016-17 along with notices for attachment dated 23.02.2021, which are garnishee notices issued to the Revenue Administrator, Mahe attaching the properties of the partners of the firm in Mahe Region for the arrears of tax and penalty due to the Government under the provisions of the Puducherry Value Added Tax Act, 2007 (in short 'Act') in terms of Section 40 thereof read with Section 174 of the Puducherry Goods and Service Tax Act, 2017, so as to prevent alienation of the said properties.

3. The impugned orders of assessment dated 18.01.2021 have been served on the petitioner on 19.01.2021 and admittedly, the petitioner has a period of 60 days to file first appeal before the first Appellate Authority constituted under the Act. The impugned notices for attachment dated 23.02.2021 have been issued even prior to the expiry of the appeal period, and are, in my view, pre-mature.

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