IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF MARCH, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.55544/2018 AND WRIT PETITION Nos.3010-3012/2019 (T – RES) BETWEEN:
M/S. SEMLER RESEARCH PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT HAVING ITS REGISTERED OFFICE AT No.21, 22, 23, P A ARCADE KODIGEHALLI MAIN ROAD SAHAKARNAGAR, BENGALURU-560092 REP. BY ITS AUTHORISED SIGNATORY. …PETITIONER [BY SRI VEENA J. KAMATH, ADV. FOR KAMATH & KAMATH ADVS.] AND:
THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES [AUDIT]-3.5 DVO-3, 2ND FLOOR, BMTC BUILDING SHANTINAGAR, BENGALURU-560027. …RESPONDENT [BY SRI T.K.VEDAMURTHY, AGA.] THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ENDORSEMENTS DATED 13.11.2018 AS PER ANNEXURES-A – A3 AND DIRECT THE RESPONDENT TO PROVIDE A FRESH OPPORTUNITY OF HEARING ON THE RECTIFICATION APPLICATIONS FILED BY THE PETITIONER VIDE LETTER DATED 31.10.2018 AS PER ANNEXURES – D – D3 AND THEREAFTER PASS REASONED AND SPEAKING ORDER IN ACCORDANCE WITH LAW.
THESE PETITIONS COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Learned Additional Government Advocate accepts notice for the respondent.
2. The petitioner has challenged the endorsements dated 13.11.2018 as per Annexures-A – A3 to the writ petitions inter alia seeking for a fresh opportunity of hearing on the rectification applications filed by the petitioner vide letter dated 31.10.2018 at Annexures-D – D3 to the writ petitions.
3. The petitioner is a registered dealer under the provisions of Karnataka Value Added Tax Act, 2003 ['KVAT Act' for short], Central Sales Tax Act, 1956 ['CST Act' for short] and KTEG Act, 1979. The petitioner is engaged in the services, business of scientific and technical consultancy services i.e., research and development of bio-equivalence and bio-analysis for healthy human being. The respondent concluded reassessment proceedings relating to the tax periods 2009-2014 under Section 39[1] read with Section 72[2] and Section 36[1]/37 of the KVAT Act vide orders dated 28.02.2017, 31.03.2018, 07.04.2018 and 19.04.2018 in respect of the tax periods 2010-11, 2011-12, 2012-13 and 2013-2014. It appears that the petitioner had filed rectification application under Section 69 of the KVAT Act seeking for rectification of the aforesaid reassessment orders and sought for personal hearing.
4. The respondent has passed the orders vide endorsement dated 13.11.2018 rejecting the rectification applications, without providing an opportunity of hearing to the petitioner. Hence, these writ petitions.
5. The main grievance of the petitioner is that the orders impugned are passed contrary to the well settled principles of natural justice. Despite opportunity of hearing was sought by the petitioner specifically, the same has not been provided before passing the impugned orders and accordingly seeks for quashing the same and to remit the matter to the respondent for reconsideration of the rectification applications.
6. Learned Additional Government Advocate made an endeavour to justify the impugned orders.
7. The fulcrum of dispute involved in these writ petitions revolves around the denial of opportunity of hearing to the petitioner by the respondent before passing the orders impugned herein. It is well settled law that an order passed against the principles of natural justice cannot be sustained and the same requires to be set aside. It was incumbent on the respondent – prescribed authority to provide an opportunity of hearing as prayed by the petitioner before passing of the impugned orders.
8. In the circumstances, the orders impugned at Annexures-A – A3 are quashed. The proceedings are remitted back to the respondent – prescribed authority to reconsider the rectification applications in accordance with law after providing an opportunity of hearing to the petitioner.
9. The petitioner shall appear before the respondent on 02.04.2019 without expecting any notice. The respondent shall pass appropriate orders in accordance with law after hearing the petitioner in an expedite manner.
With the aforesaid observations and directions, the writ petitions stand disposed of.
Sd/- JUDGE NC.