[House Tax] Authorities Acted In Undue Haste By Giving Only One Day's Notice For Hearing: Allahabad High Court Quashes Assessment Order

While quashing the enhanced assessment order regarding house tax passed by the authorities, the Allahabad High Court held that the authorities acted in undue haste by giving one day's notice for the hearing, which is not sufficient notice.

A notice regarding the enhancement of house tax was issued by the Department on 14.03.2024, fixing 16.03.2024 as the date for the hearing. The notice was served upon an employee of the petitioner on 15.03.2024. On the date of the hearing, the petitioner appeared before the tax Superintendent and sought 20 days adjournment.

On 21.03.2024, ex-parte order was passed substantially enhancing the assessment of house tax for petitioner's property. The order recorded that 18.03.2024 was fixed as the date of hearing and the petitioner did not appear on the said date. Challenging the ex-parte order, petitioner pleaded that no hearing took place on 18.03.2024.

The Court observed that Court observed that even though the application for adjournment was not rejected, fixing of 18.03.2024 as the next date shows declining of the adjournment sought. The Court held that since one day was provided to the petitioner to appear for the hearing, 20 days adjournment sought by the petitioner was not unreasonable.

The bench comprising of Justice Saumitra Dayal Singh and Justice Donadi Ramesh held that

“Issuance of notice is not an empty formality to be completed only to protect the record from a technical vice of violation of rules of natural justice. Issuance of notice and giving opportunity to respond to the notice is a real safeguard against arbitrary and capricious exercise of power by quasi judicial authorities. It runs parallel to the obligation of the quasi judicial authorities to confront the noticee with adverse material and therefore the likely reasoning that he has to meet for which such notice has been issued.”

The Court held that it is the duty of the authority to issue a show cause notice disclosing all adverse material/ facts replied upon and to give sufficient time to the petitioner to file a reply. The Court held that only after the notice and the reply have been exchanged, an opportunity of hearing may be granted giving due time to the petitioner to participate.

Holding that the authorities had acted in undue haste, the Court set aside the ex-parte assessment order. The Court directed the respondents to issue a proper notice if they wanted to proceed with the assessment and to give petitioner 2 weeks' time to file reply. Thereafter, an advanced notice of 15 days be given to the petitioner for personal hearing.

Case Title: Hotel President Through Its Partner / Proprietor And Another v. State Of Up And 2 Others 2024 LiveLaw (AB) 251 [WRIT TAX No. - 520 of 2024]

Case citation: 2024 LiveLaw (AB) 251

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