Allahabad HC quashes Trade Tax Revision Petition as Decision on Second Appeal was Made on Ex parte basis [Read Order]

The Allahabad High Court quashed the trade tax revision petition as decision on the second appeal was made on an ex parte basis.

The revisionist in the present matter is M/S Siddheshwar Bhandar Naveen Mandi Hardoi.

Trade tax revision has been filed against the order passed pertaining to the assessment year 2002-03 (central). The revision had initially been admitted although the questions of law have not been framed.

In the memorandum of revision, seven questions of law have been proposed pertaining not only to the merit of the assessment order but on the point that the impugned order has been passed on an ex parte basis without recording any satisfaction about service upon the revisionist.

The Counsel for the revisionist submitted that against the assessment order, the revisionist had preferred the first appeal which was decided whereby tax subjected to the sale of ‘Mota Anaj’ was reduced from taxability at the rate of 4% to 2% and as such the first appeal preferred by revisionist was allowed.

The Counsel further submitted that against the aforesaid order, revenue had filed a second appeal in which the first date of hearing was fixed and as such second appeal was heard on the same date and thereafter decided by means of order on an ex parte basis. It is submitted that no notice whatsoever was ever received by the revisionist pertaining to the pendency of the aforesaid second appeal due to which the revisionist was unable to appear.

The Counsel appearing on behalf of revenue refuted submissions advanced by the counsel for revisionist with the submission that the order impugned clearly indicates that notice regarding the pendency of the second appeal had been served upon the partner of the firm.

The Court of Justice Manish Mathur observed that “The Tribunal was clearly unjustified in deciding the second appeal on ex parte basis on the very first day of the hearing and as such the order impugned is clearly vitiated due to violation of principles of natural justice.”

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