Madras High Court quashes order imposing Tax liability and Penalty under TNVAT against BMW [Read Order]

The Madras High Court quashed the order imposing tax liability and penalty against BMW.

The respondent authority by Order had assessed the liability of the Petitioner, BMW for tax for the year 2014-2015 and imposed penalty under the TNVAT.

The Senior Counsel, Mr. Tarun Gulati appearing for the Petitioner submitted that the Respondent Authority has hastily proceeded to pass the impugned Order entailing adverse civil consequences to the Petitioner in violation of the principles of natural justice.

The coram consists of P.D. Adikesavalu set aside the impugned order and directed the Respondent Authority to record the reply submitted by the Petitioner as an explanation to the notice.

The court further directed the Petitioner to appear before the First Respondent at 11.30 a.m. on December 21, 2020 with all supporting documents to substantiate its contentions.

“If the First Respondent is not in a position to take up the matter on that date, he shall inform the Petitioner of the adjourned date of hearing in the prescribed manner. It is incumbent upon the First Respondent to conduct inquiry affording full opportunity of personal hearing to the Petitioner following the prescribed procedure in consonance with the principles of natural justice, deal with each of the contentions raised and pass reasoned orders on merits and in accordance with law and communicate the decision taken to the Petitioner underwritten acknowledgment,” the court said.