Tax assessment orders must adhere to principles of natural justice, including the right to a hearing.

JUDGMENT

The challenge in the writ petition is against Exts.P1 and P2 assessment orders passed in relation to the petitioner under the Kerala Value Added Tax Act , hereinafter referred to as the KVAT Act. The grievance of the petitioner in the writ petition is essentially that before passing Exts.P1 and P2 orders, he was not heard. It is his specific contention that he is a dealer of medicine and the turnover of medicines at his hands is exempted from payment of tax under the KVAT Act, since the first dealer of medicines in the State pays tax on the MRP of the goods.

2. I have heard the learned counsel appearing for the petitioner as also the learned Government Pleader appearing for the respondents.

On a consideration of the facts and circumstances of the case as also the submissions made across the bar, I note from Exts.P1 and P2 orders that the said orders have been passed without hearing the petitioner. Although the learned Government Pleader, on instructions, would submit that a notice dated 25.09.2016 was served to the petitioner and the petitioner had not responded to the same, I find from Exts.P1 and P2 order that the said orders do not state any reasons as to why the assessment had to be done on the petitioner in the manner indicated in Exts.P1 and P2 order. This is more so, in the light of the specific contention of the petitioner that the turnover in his hands would be exempted from tax under the KVAT Act. Accordingly, I quash Exts.P1 and P2 orders and direct the respondent to pass fresh orders of assessment in relation to the petitioner for the assessment years 2012-13 and 2013-14, after hearing the petitioner. To enable the respondent to do so, I direct the petitioner to appear before the respondent at his Office at 11 AM on 12.04.2016. The respondent shall pass fresh orders as directed, within a period of one month thereafter.