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TMI Blog2019 (1) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... er on which the show cause notices issued deserves interference. It is very unfortunate that the assessing officers have either totally ignored the Circular issued by the Commissioner of Commercial Taxes and the procedures - If the selling dealer fails to pay tax, action has to be taken only against the selling dealer and not against the purchasing dealer. The web report or the data maintained by the Department is only a starting point, based on which, the authority has to enquire and proceed further. They have to call for objections by giving the requisite details, give an opportunity of personal hearing, verify the records maintained by the dealers on either side as well as the records of the Department. Without doing so, the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years, on time and the same has also been accepted and approved. However, based on inspection report as well as further scrutiny of web reports, the Department found some discrepancies and therefore, the present impugned orders, reversing the ITC, came to be passed. In most of the cases, reversal of ITC has taken place mainly based on the verification done by the respective assessing officers by comparing the returns filed by the purchasing / selling end dealer with that of the data maintained by the Department. In other words, due to the mismatch of return particulars between Annexure I and Annexure II of selling and buying end dealers. In some cases, some other grounds are also there, other than mismatch, based on which such reversal w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter and passed the impugned orders. 5. Heard the learned Counsel appearing for the respective parties and perused the voluminous papers that were placed on record. 6. Perusal of record shows that all the petitioners were served with pre-revision notices, inviting objections. The main ground in such prerevision notices is with regard to mismatch of particulars between Annexure I and Annexure II of seller and buyer end. But, it is seen that the show cause notices are bereft of particulars regarding the name and/or trade identification number (TIN) number of the dealer at the other hand. It is stated that cross verification of buyer and seller is made through Web. But, web report was not enclosed. Unless the intranet web report a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the dealers are registered in different assessment circles. The Court has come across cases, where such mechanically drafted show-cause notices have been sent by assessing officers without embarking upon any enquiry, even though the other end dealer is also registered within his jurisdiction. Thus, when the assessing officer has data to show that the dealers registered with him, whose returns have been accepted when compared to the other end dealer does not match, then the assessing officer is first required to enquire with the assessing officer of the other end dealer to make verifications as to whether the mismatch could have occurred due to any one of the factors, which may not be due to the deliberate default of the dealer, satisfy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has to be taken only against the selling dealer and not against the purchasing dealer. The web report or the data maintained by the Department is only a starting point, based on which, the authority has to enquire and proceed further. They have to call for objections by giving the requisite details, give an opportunity of personal hearing, verify the records maintained by the dealers on either side as well as the records of the Department. Without doing so, the Department cannot fasten the liability on any one of the arm of a sale proceeding. 12. In view of the foregoing discussions, this Court is of the view that all the matters should be remanded for fresh consideration. Accordingly, all the impugned orders passed by the respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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