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IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjeev Sachdeva, J.
Amit Nagpal - Appellant
Versus
BSES Yamuna Power Limited - Respondent
Civil Writ Petition No. 14026 of 2021, Civil Miscellaneous Application No. 44254-44255 of 2021
Decided On : 09-12-2021
Natural Justice - Assessment Order - The court set aside the assessment order and bill due to a violation of the principles of natural justice, as the lab report relied upon came into existence after the petitioner had filed a reply to the advisory notice. The respondents were directed to issue a fresh show cause notice, provide the entire material to the petitioner, and pass a fresh speaking order after giving an opportunity of personal hearing.
Fact of the Case:
The petitioner challenged the assessment order and bill, arguing that no show cause notice was given and the advisory notice lacked reasoning or material. The impugned order relied on a lab report that came into existence after the petitioner's reply, violating natural justice.
Finding of the Court:
The court set aside the assessment order and bill, directing the respondents to issue a fresh show cause notice, provide the entire material, and pass a fresh speaking order after giving an opportunity of personal hearing to the petitioner.
Issues: Violation of principles of natural justice due to reliance on lab report created after petitioner's reply to advisory notice.
Ratio Decidendi: The court found a violation of natural justice and directed the respondents to rectify the procedural irregularity by issuing a fresh show cause notice and providing the entire material to the petitioner.
Final Decision: The petition was allowed, and the assessment order and bill were set aside. The respondents were directed to issue a fresh show cause notice and pass a fresh speaking order after providing an opportunity of personal hearing to the petitioner.
JUDGMENT
Sanjeev Sachdeva, J. - Petitioner impugns assessment order dated 24.11.2021 and the consequential bill dated 24.11.2021.
2. Learned counsel for the petitioner submits that no show cause notice was given to the petitioner and the advisory notice itself was bereft of any reasoning or material.
3. He submits that advisory notice was given on 13.09.2021 requiring the petitioner to respond by 17.09.2021. He submits that the impugned order dated 24.11.2021 relies on a lab report dated 01.10.2021 which came into existence after the reply was filed and in view of the above there is a clear violation of the principles of natural justice.
4. Issue notice. Notice is accepted by learned counsel for the respondent.
5. Learned counsel for the respondent without prejudice submits that as a technical plea is being raised by the petitioner, respondents are willing to issue a fresh show cause notice and provide to the petitioner, the entire material that is sought to be relied on and thereafter pass a fresh speaking order after giving an opportunity of personal hearing.
6. In view of the above, the impugned assessment order dated 24.11.2021 and the impugned bill also dated 24.11.2021 are set aside.
7. Respondents shall issue a fresh show cause notice to the petitioner enclosing therewith the entire material that they seek to rely on.
8. Petitioner shall file a reply to the show cause notice within one week and respondents would then pass a fresh speaking order after giving an opportunity of personal hearing to the petitioner.
9. The petition is accordingly allowed in the above terms. All rights and contentions of parties are reserved.
Violation of principles of natural justice due to reliance on evidence created after the petitioner's reply constitutes a procedural irregularity.
The court reinforced that the principles of natural justice require that parties be given notice and opportunity to respond before adverse decisions are made.
Procedural fairness mandates that parties be given adequate notice and opportunity to respond before adverse administrative decisions are made.
Breach of principles of natural justice leading to the quashing of assessment order, notice of demand, and penalty notice.
A breach of principles of natural justice warrants setting aside an assessment order and notices, allowing for a de novo exercise by the Assessing Officer.
Premature issuance of an assessment order before the response period violates natural justice, leading to the quashing of the order and remand for proper adjudication.
The impugned assessment order, passed without allowing the petitioner to respond within the given time frame and in light of technical glitches preventing the petitioner from filing objections, was n....
Violation of the principle of natural justice in the assessment process warrants setting aside the assessment order and remanding the matter for a decision in accordance with law.
The court established that adherence to procedural fairness, specifically adequate response time to Show Cause Notices, is essential in tax assessment proceedings.
Proper opportunity of hearing and clear show cause notice are essential before passing an assessment order.
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