A Single Bench of the Madras High Court quashed the Value Added Tax ( VAT ) assessment order and ordered to re-do the assessment, as the pre-assessment notice was not served to the assessee.
In the instant case, the assessee filed a writ petition challenging the order of assistant commissioner dated 21.04.2017 who proceeded with the assessment without issuing any pre-assessment notice to the assessee. The notice inviting objections dated 29.06.2015 was only served to the assessee and the assessee hadn’t responded to that notice.
T.Amjad Khan, who appeared on behalf of the department submitted that the notice had been served and all the notices served to the assessee were subsequent to the assessment order dated 21.04.2017.
Raja karthikeyan, who appeared on behalf of the assessee submitted that the assessment was done without serving any pre-assessment order and prayed for quashing the impugned order.
The Madras High Court Bench of justice Muhammad Shafeeq held that, “In view of the same, the impugned order, dated 21.04.2017 is set aside and matter is remitted back to the 2nd Respondent subject to the conditions that the Petitioner would pay 40% of the taxes demanded in terms of the order of the assessment, dated 21.04.2017, which was consented to by both sides, on complying with the above condition, the Assessing Officer shall re-do the assessment after putting the Petitioner on notice and affording a reasonable opportunity.”
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