Sidhartha vs Commissioner of Commercial Taxes, Bangalore and Others

The petitioner is questioning the legality and validity of the order dated 13-2-2004 on the file of Karnataka Appellate Tribunal, Bangalore, in STA Nos. 448 to 462 of 2002, the first appellate order dated 26-12-2001 bearing Nos. KET.AP.01 to 15 of 2001-02 and the assessment order dated 31-5-2001 passed by the Entertainment Tax Officer, VI Circle, Mysore, vide Annexures-A, B and C respectively.

Being aggrieved by the order dated 26-12-2001 passed by the Joint Commissioner of Commercial Taxes (Appeals), Mysore Division, in Appeal Nos. KET.AP.01 to 15 of 2001-02 dismissing the appeals preferred against the assessment orders dated 31-5-2001 passed by the Entertainment Tax Officer, 6th Circle, Mysore, the petitioner preferred appeals before the Karnataka Appellate Tribunal, Bangalore, in STA Nos. 448 to 462 of 2002 which came to be dismissed on 13-2-2004 (Annexure-A) confirming the order passed by First Appellate Authority and Assessing Authority.

The petitioner has assailed the impugned orders at Annexures-A, B and C on the ground that he had sought for time to file objections to the proposal put forth in the notice and in spite of his request the Assessing Authority had not considered his request for filing objections and without conducting proper enquiry, the authorities proceeded to pass order without following the principles of natural justice.

After careful perusal of the impugned orders at Annexures-A, B and C and considering the contentions urged by the petitioner and the respondents, the only question that arises for consideration of this Court is as to whether the authorities are justified in passing the impugned order against the petitioner.

On perusal of the impugned orders passed by the authorities, it is manifest on the face of the records that all the three authorities have committed an error of law muchless irregularities and proceeded to pass orders without giving sufficient opportunity to the petitioner to put forth his case nor conducted proper enquiry as envisaged under the mandatory provisions of the Karnataka Entertainments Tax Act, 1958. It is significant to note that as rightly pointed out by the learned Counsel for the petitioner that the Assessing Authority has issued notice and the assessee has filed an application requesting the authority to give 30 days time to file objections which was not been considered by the authority as evidenced at para 2 of the page 32 of the writ petition and further proceeded to pass the impugned order. The said error committed by the 3rd respondent has not at all been considered by the 1st and 2nd respondents. Therefore, the authorities are not justified in passing the impugned order without considering the material and affording an opportunity to the petitioner to file objections. It is well-settled law laid down by the Apex Court that the authorities are entitled to proceed with the matter subject to the condition that they must give sufficient opportunity to the party and conduct the enquiry before passing any order. This fact has not been disputed by the Government Pleader for the respondents. Therefore, in view of the non-compliance of the principles of natural justice, the impugned orders cannot be sustained and liable to be set aside. The matter requires reconsideration by the authorities afresh.

Accordingly, the order dated 13-2-2004 on the file of Karnataka Appellate Tribunal, Bangalore, in STA Nos. 448 to 462 of 2002, the first appellate order dated 26-12-2001 bearing Nos. KET.AP.01 to 15 of 2001-02 and the assessment order dated 31-5-2001 passed by the Entertainment Tax Officer, VI Circle, Mysore, vide Annexures-A, B and C respectively are set aside. The matter stands remitted to the Assessing Authority for reconsideration afresh in accordance with law. The petitioner is permitted to file detailed objections within 10 days from the date of receipt of copy of this order. The 3rd respondent is directed to consider the objections of the petitioner and then proceed with the matter in strict compliance of the principles of natural justice and decide the matter within three months from the date of filing of objections.

In the result, the writ petitions stand disposed of.

The Government Pleader is permitted to file memo of appearance within two weeks from today.