Notice Sent to Company returned as ‘Addressee Left’: Kerala HC Upholds Ex-parte Assessment since Director received Notice send to him [Read Judgment]

While confirming an ex-parte assessment order passed under the Kerala Value Added Tax (KVAT) Act, the Kerala High Court observed that the order cannot be quashed merely on ground that the show cause notice sent to the Company was returned when a same notice issued to the Director of the Company was duly received.

In the instant case, the pre-assessment notice sent to the company was returned with the postal inscription ‘addressee left’, whereas the notice sent to the Director was duly received by him. However, neither the Company’s representatives nor the Director has not co-operated with the assessment proceedings. Consequently, the department passed an ex-parte order demanding tax from the Company.

Aggrieved by the order, the petitioner-Company approached the High Court contending that the order must be quashed since there is a violation of the principles of natural justice.

Dismissing the writ petition, Justice Jayasankaran Nambiar, who penned the order, held that “the impugned order cannot be said to be vitiated on account of any jurisdictional error, or non-compliance with the rules of natural justice, so as to interfere with the same in these proceedings under Article 226 of the Constitution of India.”