CONTRUST SUPER DESIGNER TILES Vs. ASST COMMISSIONER DEPARTMENT

JUDGEMENT

(1.) Challenge in this Writ Petition is against Ext.P3 order of assessment issued under Section 25 (1) of the Kerala Value Added Tax Act, 2003 (for short KVAT Act). Normally this Court may not inclined to entertain challenges against orders of assessment, because of the effective alternate remedy by way of appeal provided under the statute. But the petitioner is raising a substantial challenge against sustainability of the order on the ground that there is non-compliance of the mandatory requirements provided under Section 25 of the KVAT Act. It is contended that the petitioner was not afforded with any opportunity of hearing before finalisation of the assessment. Going by Ext.P1 notice of proposal and Ext.P3 order of the assessment, it is not revealed that any such opportunity was afforded. Learned Government Pleader appearing for the respondent is also not in a position to affirm that any such opportunity has been given before finalising the assessment.

(2.) Yet another contention is that, the assessment was not finalised by an officer who had issued Ext.P1 notice. It was also contended that a composite order of assessment under the KVAT Act and the CST Act is not sustainable. Learned counsel for the petitioner pointed out that a major portion of the assessment relates to turnover for which C Form declarations were submitted. Those C Forms were not accepted alleging certain defects. But the petitioner was not informed about any defects nor he was afforded with any opportunity to rectify those defects.

(3.) Considering the provisions contained in Section 25 (1) of KVAT Act, affording personal hearing before finalisation of the assessment, is mandatory. This has not been complied with in the case at hand. This Court in the judgment in Suzion Infrastructure Vs. Commercial Tax Officer [2010 (3) KHC 299] had specifically observed that assessments finalised without due compliance of the mandatory requirements contemplated under Section 25 (1) is unsustainable and are liable to be quashed.