2004 (10) TMI 565 - HC - VAT and Sales Tax

Summary

Issues:
1. Failure to provide copies of material collected from a third party and the third party's statement to the appellant.
2. Inability of the department to produce records used in assessments.
3. Request for remand by the Government Pleader.

Analysis:

1. The judgment addresses the issue of the respondent's failure to supply copies of material collected from a third party and the third party's statement to the appellant. The Court had directed the respondent to provide this information within a week to allow the appellant to present their defense based on the material. The assessments were reviewed based on evidence from a third party, but the appellant was not given access to this crucial information for their defense. The Court found it improper to remand the case due to its long pending nature, and thus ordered the respondent to make the records available to settle the matter conclusively. The failure to provide this material led to the quashing of the reassessments and allowed the special appeals.

2. Another critical issue highlighted in the judgment is the department's inability to produce the records used in the assessments. Despite multiple adjournments, the learned Government Pleader admitted that the records were not available due to being misplaced during office shifting. The Court emphasized that since the assessments were based on evidence not disclosed to the appellant, the reassessments could not be upheld. Consequently, the orders revising the assessments were quashed, and the special appeals were allowed. The Court rejected the request for remand, questioning the purpose of such action when the department itself could not locate and present the necessary records.

3. The final issue pertains to the Government Pleader's submission for the matter to be remanded. The Court dismissed this request, highlighting the futility of remanding the case when even the High Court could not compel the department to produce the records. The Court reasoned that if the department was unable to locate the records for the Court, expecting the assessing officer to procure such records was unreasonable. Therefore, the request for remand was not considered, and the appeals were allowed based on the aforementioned grounds.