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TMI Blog1993 (5) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... n opportunity of being heard either in person or through authorised representative within 3 days from the date of receipt of the notice to show cause as to why the aforesaid amount should not be realised from them within 7 days from the date of receipt of the communication. 3.. In Civil Rule Nos. 1231/93, 1274/93, 1294/93, 1295/93, 1296/93, 1297/93, 1298/93, 1299/93, 1300/93, 1301/93, 1302/93 and 1354/93 by the impugned notices each of the petitioners was intimated that it has become expedient so as to demand from them a sum of money specified in the notices as security under section 11-A of the Assam Sales Tax Act, 1947, for proper realisation of the tax payable under this Act. The petitioners were further intimated that they were given opportunity of being heard in person or through authorised representative within 3 days from the date of receipt of the notices to show cause as to why the amount of security should not be realised from them within 7 days from the date of receipt of the communication. 4.. I have heard Dr. A.K. Saraf, learned counsel for the petitioners as well as the learned Advocate-General, Assam, assisted by Mr. S.A. Laskar, Senior Government Advocate and Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 283 (Gauhati); (2) Govinda Misra v. Shri Jyotish Chandra Roy reported in (1990) 1 GLR 57; and (3) C.B. Gautam v. Union of India reported in (1993) 1 SCC 78; [1993] 199 ITR 530 (SC). Placing reliance on the above decisions, learned counsel for the petitioner submits that the impugned notices are no notice in the eye of law and are liable to be quashed and the orders passed in pursuance of the impugned notices are also equally illegal and inoperative and are liable to be quashed. 6.. Learned Advocate-General on the other hand submits that it is not necessary to state reasons and grounds in the notice itself. The assessee has got full opportunity to place his case before the competent authority that he is not required to pay security/additional security when he was heard in person by the authority and it is sufficient if the final orders passed in the proceeding disclose the reasons for which furnishing of security for proper realisation of the tax payable, etc., is necessary. Learned Advocate-General submits that although it is better to disclose the reasons and grounds in the notice, but non-disclosure of reasons and grounds for furnishing security or additional security in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the proper realisation of tax payable under the Act, he may, at any time before or after registering the dealer, by order in writing and for reasons to be recorded therein, require the dealer to furnish within such time and in such form as may be specified in the order reasonable security for the aforesaid purpose; and on being so required the dealer shall accordingly furnish the security. ................" Section 7 of the Assam Finance (Sales Tax) Act, 1956, provides as follows: "7. Certificate of registration.---(1) A dealer registered under section 5 or section 6 shall be granted a certificate of registration in such form as may be prescribed, which shall specify the name or names of goods in which at the time of grant of the said certificates the dealer carries on business, and such other particulars as may be prescribed: Provided that the Commissioner may, for good or sufficient reasons, demand from a dealer who has been registered or a person who has applied for registration under section 5, or a person who has been required to get himself registered under section 6, reasonable security for proper payment of tax. ..................." 8.. On a plain reading of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f defence by the assessee. 9.. In para 9 of the decision in the case of Govinda Misra (1990) 1 GLR 57 a Division Bench of this Court has held as follows: "9. 'Notice' implies notice of all the relevant facts giving rise to the proposed action. If action has been initiated on an application filed by any third party, copy of such application must be supplied along with the notice. If some information has been received in pursuance of enquiry or otherwise, the result of such enquiry and other materials against the person concerned must be referred in the notice or made available to him, to enable him to make effective representation in the matter. It is only when all allegations on the basis of which any action is proposed to be taken are clearly and succinctly stated in the notice that the affected person can be expected to make a representation. If required, materials on which allegation is based, should also be supplied or made available to such person to enable him to understand properly the case made out against him. It must be remembered that notice in such case is not a mere formality. It is given with a view to affording an opportunity to those against whom any action is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STC 283 (Gauhati) has direct bearing on the question of law involved in these cases. As such, the notices demanding furnishing of security/additional security issued by the assessing authority under the provisions of the Central Sales Tax Act and/or the Assam Sales Tax Act and/or Assam Finance (Sales Tax) Act should disclose reasons and grounds with material facts on the basis of which the competent authority is prima facie satisfied that for proper realisation of the tax payable under the Central Sales Tax Act, or the Assam Sales Tax Act and/or the Assam Finance (Sales Tax) Act and for proper custody and use of the forms referred to under sub-section (2A) of section 7 of the Central Sales Tax Act, furnishing of security/additional security by the assessee has become necessary. 12. In the instant petitions none of the notices issued by the respondent No. 2 discloses the reasons and grounds for which he is satisfied that for the purpose of proper realisation of the tax payable under the Act, furnishing of security/additional security is necessary. Non-disclosure of the reasons and grounds with material facts in the notices having deprived reasonable opportunity to the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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