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2017 (11) TMI 593 - HC - VAT and Sales TaxRevision of assessment order - TNGST Act - inter-state purchases - assessment of turnover - penalty u/s 12 (3) (b)of the TNGST Act - natural justice - Held that - if a document relied by the Assessing Officer collected from the third party is not made available to the dealer and if the dealer is not provided an opportunity to cross- examine such third party for no fault committed by them, then, the benefit should accrue to the dealer. Consequently, it has to be held that no Revision of Assessment can be made based on those documents/ statements which remain uncontroverted. The mistake committed by the respondent is writ large on the face of the impugned order. Therefore, the impugned order has necessarily held to be unsustainable - petition allowed - decided in favor of petitioner.
Issues:
Challenge to assessment order under TNGST Act for the assessment year 2003-2004, Compliance with direction to afford opportunity for cross-examination, Interpretation of Section 54 of TNGST Act regarding summoning witnesses and production of documents. Analysis: 1. Challenge to Assessment Order: The petitioner, a dealer in Vegetable Oil and Oil Cake, challenged the assessment order dated 06.10.2006 under the TNGST Act for the assessment year 2003-2004. The petitioner reported a total turnover of ?23,33,342.00 and a taxable turnover of ?59,789.00. The Assessing Officer suspected interstate purchases based on details obtained from a check post, leading to a revision notice proposing to assess the turnover and levy penalties under the TNGST Act. 2. Compliance with Direction for Cross-Examination: The petitioner filed a writ petition challenging the assessment order dated 22.07.2004, which was disposed of with a direction for the respondent to allow cross-examination of witnesses. However, in the impugned assessment order, the respondent stated that although summons were not sent to other State dealers, they failed to appear, leading to confirmation of the proposal and passing of the assessment order. The issue arises whether the respondent was justified in not summoning and allowing cross-examination. 3. Interpretation of Section 54 of TNGST Act: Section 54 of the TNGST Act empowers the assessing authority to summon witnesses and produce documents. The Court referred to a previous case where it was held that the Assessing Officer should exercise powers under this section to summon third parties when their documents are relied upon for determining turnover. In the present case, the respondent admitted to sending summons to other State dealers but failed to enforce their attendance or compel document production, rendering the evidence collected from third parties unreliable. 4. Conclusion: The Court found that the respondent's failure to compel the attendance of third parties and provide an opportunity for cross-examination rendered the assessment order unsustainable. Consequently, the writ petition was allowed, the impugned order was quashed, and no costs were awarded. The judgment emphasized the importance of following due process and ensuring fairness in assessments under the TNGST Act.
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