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TMI Blog2014 (9) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-assessment notices specifically raising a contention in respect of each of the allegation in the notice. Therefore, the assessing authority bound to consider the objections item-wise and accept or reject the same or partially accept the same. However, by a three paragraphs order, the order of assessment has been finalized and the proposal in the pre-revision notice has been confirmed. Petitioners did not produce the records before the audit party. Nevertheless, a show notice has been issued by the Assessing Officer, in which, the petitioners should be given an opportunity to show-cause as to why the assessment should not be revised and while showing cause, it is always open to the petitioners to produce the records to substantiate the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 2011-12 and the total and taxable turnover varied for each other assessment year. On 10.2.2009, the Officers of the Enforcement Wing audited the place of business of the petitioners and it was noticed at the time of audit that there were several defects in respect of the assessment year 2006- 07. It was pointed out that the factory buildings were constructed by the petitioners themselves, but the purchase bills relating to the building materials were not produced at the time of audit and therefore, it was construed that the materials were purchased without bills and it was proposed to levy tax on the turnover at 4%. It was further alleged that the petitioners have used leased machinery in the manufacture of yarn and tax due on the right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement was produced along with the objections filed by the petitioners. Therefore, it was submitted that the proposals to revise the turnover is arbitrary and against the provisions of the Act. As regards the levy of penalty under Section 27(3) of the Act, it was submitted that penalty is not automatic and it is leviable only in case of wilful non- disclosure of assessment turnover by the dealer and in their case, there is no wilful non-disclosure and therefore, penalty is not leviable. Similar objection was taken for the other assessment years 2007-08, 2008-09, 2009-10 and 2010-11. There was a demand in respect of dyeing charges and wrong availment of ITC. The petitioners pointed in their objections that a request was made to furnish the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion, the same having been done only after the completion of audit on their account. The objection filed by the dealers is an after thought and therefore, they were rejected. 4. A perusal of the order of assessment makes it clear that none of the objections raised by the petitioners were considered item-wise. In certain cases, the petitioners requested for copies of the documents. The request was not considered nor rejected. Further, the petitioners specifically requested for an opportunity of personal hearing. This was also not afforded. For all the above reasons, the order of assessment is liable to be interfered with on the ground of violation of principles of natural justice. 5. The learned Special Government Pleader appearing for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . According to the department, the petitioners did not produce the records before the audit party. Nevertheless, a show notice has been issued by the Assessing Officer, in which, the petitioners should be given an opportunity to show-cause as to why the assessment should not be revised and while showing cause, it is always open to the petitioners to produce the records to substantiate the same. If there are no records available, then the petitioners can substantiate their stand by raising objections. In such circumstances, there is a duty enjoined upon the Assessing Officer to consider the objections and passes speaking order rejecting the same. These aspects which are primarily necessary to be followed while finalizing an order of assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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