2011 (12) TMI 775 - HC - VAT and Sales Tax

Summary

Issues Involved:
The issue involved in the judgment is the failure of the authorities to supply a copy of the report from the Regional Vigilance and Enforcement Officer, leading to a decision against the petitioners under the Andhra Pradesh General Sales Tax Act.

Summary:

Assessment Order Issue:
The assessment order highlighted discrepancies in reported paddy purchases by the dealers, based on incriminating material from the Vigilance & Enforcement Authorities of Rajahmundry. The suppressed paddy purchases were proposed to be added, leading to a specific value being arrived at.

Contention of Petitioner:
The petitioner contended that the assessing authority blindly followed the report of the Vigilance and Enforcement Officer without conducting an inquiry. It was argued that the authority did not apply its mind but merely acted upon the information provided.

Appellate Decision:
Upon appeal, the Appellate Deputy Commissioner held that a best judgment assessment necessitates an inquiry by the assessing authority rather than solely relying on the Vigilance and Enforcement Department's report.

Revisional Order Issue:
The Joint Commissioner did not address the petitioners' argument that the report from the Vigilance and Enforcement Department was not supplied to them but was still used against them.

Court Decision:
The Court, considering the submission by the Special Counsel for the Commercial Taxes Department, directed that the petitioners be provided with the Vigilance and Enforcement Department's report within a week. The matter was remanded back to the assessing authority for a fresh decision after supplying the report to the petitioners. Consequently, the orders against the petitioners were set aside, and the writ petitions were disposed of, along with the interim applications.