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Gujarat High Court Quashes Reassessment Order Citing Inability Of Assessee To Secure Relevant Documents Amid Covid-19 Lockdown
Udit Singh
23 Jan 2023 2:00 PM IST
The Gujarat High Court recently quashed a reassessment order and final notice of assessment issued against to an assessee after she failed to produce the relevant documents, particularly Form-F prescribed under Gujarat Value Added Tax Act, 2003 amid Covid-19 lockdown.The division bench of Justice Sonia Gokani and Justice Sandeep N. Bhatt allowed the petition under Article 226 of...
The Gujarat High Court recently quashed a reassessment order and final notice of assessment issued against to an assessee after she failed to produce the relevant documents, particularly Form-F prescribed under Gujarat Value Added Tax Act, 2003 amid Covid-19 lockdown.
The division bench of Justice Sonia Gokani and Justice Sandeep N. Bhatt allowed the petition under Article 226 of the Constitution on the ground that not giving proper opportunity to the petitioner as per the law is a clear violation of principle of natural justice. It observed,
"Having recognized the fact that it was impossible for the petitioner to get the Form-’F’ in a situation that prevailed at the relevant time he (Assessing Officer) continued to reassess the order and therefore, this petition not only under Article 226 of the Constitution of India is maintainable for the action being in breach of principle of nature justice, but the same deserves to be allowed quashing and setting aside the order of reassessment with all consequential reliefs."
The petitioner challenged the reassessment order dated 25.03.2020 and the final notice of assessment on the ground that no opportunity for final hearing was given to her despite the acknowledgment of lock down due to the COVID-19 virus.
There were two issues before the High Court:
- Whether the petition is maintainable under Article 226 of the Constitution of India when there is an appeal provided against the reassessment order?
- Whether the circumstances existed at the relevant point of time had actually made any breach of principle of natural justice?
The court held:
“In fact, no one was aware of the seriousness of the entire issue. And, yet, the fact remains that the officer concerned, having taken a note of the fact that the request has been made by the petitioner to the Rajasthan Authority for issuance of Form-’F’, he has chosen not to accommodate the petitioner nor was he given an opportunity to tender the Form-F nor any opportunity of hearing was accorded. Therefore, this petition under Article 226 of the Constitution of India can be entertained bearing in mind the fact that this is a clear violation of principle of natural justice.”
The bench observed that while not accepting and acceding to the request of adjournment, there was an absence of any intent for wilful disobedience to settled position of law on the part of the officer. The officer at the time may not have been aware of the Supreme Court's order extending limitation. However, the fact remains that proper opportunity as required under the law was missing. It thus ruled:
The court also observed that availability of alternative remedy in the form of appeal at this stage would not have served the purpose for this being a violation of the principle of natural justice.
The court not only allowed the petition but also quashed and set aside the order of reassessment permitting the petitioner to file Form-’F’ or any other documents within a period of one week before the officer concerned.
Case Title: Kavita Krushna Kumar v. Union of India
Case Citation: 2023 Livelaw (Guj) 16
Coram: Justice Sonia Gokani and Justice Sandeep N. Bhatt
