1996 (9) TMI 578 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Entitlement to Certified Copy of Inspector's Report
2. Nature of the Report as a Public Document
3. Principles of Natural Justice

Summary:

1. Entitlement to Certified Copy of Inspector's Report:
The petitioner, a registered dealer under the Orissa Sales Tax Act, 1947, sought a certified copy of the fraud case report submitted by the Inspector of Sales Tax (IST) for the assessment years 1992-93 to 1994-95. The Sales Tax Officer refused to grant the certified copy of the IST's report, citing rule 87 of the Orissa Sales Tax Rules, 1947. The petitioner argued that since the proceedings were initiated based on the report, they were entitled to a certified copy. The court held that the dealer is entitled to know the materials utilized against them in the assessment proceeding but not the report itself. The materials forming the foundation for the report must be disclosed, not the inferences drawn by the Inspector.

2. Nature of the Report as a Public Document:
The petitioner contended that the report is a public document and referenced rule 35 of the Rules and sections 74 and 76 of the Evidence Act, 1872. The court clarified that while public documents are accessible for inspection and certified copies can be provided, the IST's report does not fall under this category. The report contains the Inspector's conclusions based on collected materials, which are not determinative. The assessing officer must independently evaluate these materials and disclose them to the dealer if they are to be used in the assessment.

3. Principles of Natural Justice:
The court emphasized the principles of natural justice, particularly the maxim "audi alteram partem" (hear the other side). It is fundamental that any material adverse to the assessee, which the Revenue intends to use, must be disclosed to the assessee. The assessee must be given a reasonable opportunity to inspect these materials and cross-examine witnesses if necessary. The court reiterated that the rules of evidence do not apply to proceedings under the taxing statutes, but principles of natural justice are inherent. The assessing officer's order dated January 25, 1996, indicated the foundation of his view, making the IST's report inconsequential for the assessee.

Conclusion:
The writ application was dismissed, and the court held that the assessee is not entitled to a certified copy of the IST's report. The Sales Tax Officer's conclusions, based on the report, were adequately communicated to the assessee, satisfying the requirements of natural justice.