2011 (9) TMI 911 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to Tribunal's order upholding Joint Commissioner's assessment order based on intelligence report without furnishing copy to assessee.

Summary:
The appellant challenged the Tribunal's decision upholding the Joint Commissioner's assessment order, contending that the proceedings were initiated based on an intelligence report for which a copy was not provided, thus hindering their defense. The Government Advocate argued that the assessee admitted liability post-inspection and paid, making subsequent appeals untimely. The key point of contention was whether the assessing authority was justified in making a best judgment assessment based on intelligence information.

The assessing authority proposed additions to the value of goods sold after inspection, leading to a tax levy. The assessee requested a copy of the intelligence report to file proper objections, which was not provided. The assessing authority justified withholding the report as internal and confidential, but the High Court found this violated principles of natural justice. The Court set aside the impugned order, directing the assessing authority to furnish the inspection report for detailed objections and expedite assessment proceedings.

In conclusion, the appeal was allowed, the impugned order was set aside, and the assessing authority was instructed to provide the inspection report to the appellant for filing objections promptly. Each party was to bear their own costs, and the appellant was directed to appear before the assessing authority without further notice to receive the report. The Government Advocate was given four weeks to file a memo of appearance.