2023 (10) TMI 105 - HC - VAT and Sales Tax

Violation of principles of natural justice - no opportunity of cross-examination was given to the dealer - rejection of sales which were not proven - non-production of F forms - HELD THAT - In the present case, opportunity of hearing could only be granted to the appellant had he appeared before the assessing authority. As per order Annexure A-2, dated 28.12.2007, number of opportunities had been given to the appellant, however, he did not put in appearance nor produced any F form and the authority proceeded against ex-parte and had passed the order on the basis of evidence with them and the verification carried out at their own level from Delhi. When it was found that the dealer had accounted for these transactions at Delhi, they extended the benefit of F form to the appellant. The appellant authority has not referred to the provisions of Section 3(a) of the Central Sales Tax Act, Rules 1957 as reflected at Page 43 of the paper book where the assessee apart from producing form F is required to maintain all the conditions to claim the benefit of exemption to claim these sales on consignment basis. The appellant has not assisted in giving complete addresses of the Company namely, Shakti Trading Company and Ghansi Ram Co. and on the basis of F forms they could not get benefit under Section 3(a) of the Central Sales Tax Act Rules 1957. The appeal has been rightly accepted by the tribunal. No substantial question of law arises for consideration in the present appeal as the appellant-assessee never chose to appear before the Excise and Taxation Officer-cum-Designated Officer, Mansa and this finding of fact recorded by the authorities, after giving verification is not a question of law which needs to be examined now. Since the appellant had not appeared and lead any evidence to show that his sales were interstate or within the State, the order passed by the Tribunal does not require any interference as no substantial question of law arises for consideration - Appeal dismissed.

Summary

Issues involved: Appeal against Value Added Tax Tribunal order regarding assessment under Punjab Value Added Tax Act, 2005.

Summary:
The appellant, a dealer in oil seeds crushing business, appealed against an assessment order by the Value Added Tax Tribunal. The officers rejected certain sales made outside Punjab as local sales due to lack of dispatch evidence. However, some interstate sales were accepted after verification. The appellant failed to produce 'F' forms and complete addresses for certain transactions, leading to tax imposition and penal action. The Commissioner (Appeals) partially allowed the appeal, reducing the demand. The State of Punjab appealed to the Tribunal, which restored the original order. The appellant then appealed against this decision.

The order dated 28.12.2007 highlighted the lack of cross-examination opportunity for the dealer and noted proper transaction entries in account books. Despite multiple opportunities, the appellant did not appear before the assessing authority, leading to an ex-parte decision based on available evidence. The Tribunal rightly accepted the appeal due to non-compliance with Central Sales Tax Act rules.

No substantial question of law arose as the appellant did not provide evidence of interstate sales. The Tribunal's decision was upheld as the appellant's non-appearance and lack of evidence did not warrant interference. The appeal was dismissed.