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Issues involved:
The petition challenges a show-cause notice and an order of reassessment u/s 35(1) of the Gujarat Value Added Tax Act, 2003, directing payment of a balance tax amount. The main issue is the validity of the reassessment based solely on a show-cause notice from the Central Excise Department without further inquiry. Facts and Decision: The petitioner, a VAT-registered dealer, filed returns for 2007-08 and paid tax. A notice was issued indicating possible tax evasion, leading to a reassessment order for a higher tax amount. The petitioner challenged this order, citing a previous court decision setting aside a similar reassessment based only on an excise department notice. The court noted that the reassessment was solely on the excise notice, without independent inquiry. Quoting the previous decision, the court emphasized that reliance on the excise notice alone was insufficient to justify tax additions under the VAT Act. Consequently, the reassessment order was quashed, with liberty for a fresh assessment if permissible under the law. Conclusion: The High Court quashed the impugned reassessment order, emphasizing the need for independent inquiry before making tax additions based on external notices. The court reserved liberty for a lawful reassessment with full opportunity for the petitioner, without affecting proceedings under the Central Excise Act. The rule was made absolute with no costs awarded.
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