HC Dismissed Petition Challenging Assessment Order Since Assessee Had Sufficient Opportunities During Assessment Process

Case Details: Tvl. Sakthi Ganesh Textiles (P.) Ltd. v. Assistant Commissioner (State Tax) - [2024] 159 taxmann.com 486 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• G. Derrick Sam for the Petitioner
• C. Harsha Raj for the Respondent

Facts of the Case

In the present case, the assessee faced assessment orders regarding tax liabilities for various periods. It challenged these orders through writ petitions, claiming violation of natural justice principles during assessment process. The Court quashed initial orders and remanded matter for Revenue Authority to issue proper speaking orders after considering petitioner’s response to show cause notices.

Thereafter, the department issued impugned orders following High Court’s directions but assessee again challenged impugned assessment orders issued by contending denial of right to cross-examine parties involved in reports and statements used by Revenue Authority, lack of access to all relevant documents, and incorrect finding regarding their eligibility for transitional credit despite submitting necessary documents.

High Court Held

The Honorable High Court noted that the assessee had been given adequate opportunities to be heard and submit documents during assessment process. However, the assessee was not entitled to cross-examine parties who authored reports or provided statements relied upon by Revenue, as these were not inquiry proceedings pursuant to a charge memo. Thus, the High Court held that there were no grounds for interference and granted option to assessee to appeal through statutory channels.

List of Cases Reviewed

• Thilagarathinam Match Works v. Commissioner of C.Ex., Tirunelveli (Thilagarathinam Match Works), 2013 (295) E.L.T. 195(Mad) (para 8) distinguished