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TMI Blog2019 (3) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... tated facts and reasons such pre-judgment in a case where the permission is cancelled with retrospective effect having huge financial implication on the dealer is not fair, reasonable and legal. The permission for composition is directly related to the decision regarding liability of the appellant in assessments. The learned Officer had cancelled the permission for composition even before framing the assessment order against the appellant. We believe that the First Appellate Authority was supposed to consider all the aspects before reaching to the conclusion regarding the suppression of sales by the appellant and rejecting the present Second Appeal in case of appellant. The order of cancelling the permission for composition and the Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant is having restaurant for which it was granted permission for composition under Section 14D of the VAT Act. He submitted that the appellant had regularly filed returns and paid tax under the VAT Act on the basis of composition permission so granted to it. He submitted that a surprise visit at the premises of appellant on 17.10.2017 was taken by learned Officer Mr.R.M.Prajapati and no irregularity was noticed. He submitted that business premises were again visited on 12.02.2018 by the officer of State Tax, and retracting files from impounded hard disks and State Tax Authority raised the dispute regarding certain transaction which were alleged as not recorded in the regular books of the account of appellant. (3) Mr. Sheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant has suppressed sales during the years 2015-16 to 2017-18 and that it has not given any explanation in support of its defense. The learned Officer concluded that it had reason to believe that the appellant did not want to make any representation. (6) Mr. Sheth submitted that thereafter, assessment order were passed for the years 2015-16 to 2016-18 on 19.09.2018 wherein huge demand were raised against the appellant by presuming suppressed sales. He submitted that pursuance to said order, First Appeals were summarily dismissed on the ground of pre-deposit amount fixed on 25% of the total dues. Correspondingly the First Appeals against the orders of cancelling permission for composition were also been dismissed as the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to aforementioned Second Appeals, Mr. Sheth submitted that the assessment orders have been passed in breach of the principles of natural justice, though the appellant had extended co-operation during the proceedings against it, and submitted details submission with voluminous evidences in support of its contention. The learned Officer has proceeded to pass assessment orders without making proper inquiry and giving proper opportunity of hearing to the appellant. Thus, Mr.Sheth has submitted that the entire dues have been illegally raised against the appellant and therefore, the assessment orders and consequently the order cancelling permission for composition is bad, illegal and premature, therefore, the orders of cancelling the lump-su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, surprisingly the order of cancelling of permission for composition was passed on 28.08.2018 though the assessment orders alleging suppression of sales were passed subsequently on 19.09.2018. Considering the above stated facts and reasons, the permission for composition has been cancelled before any decision regarding the suppression of sales was taken. Considering the above stated facts and reasons such pre-judgment in a case where the permission is cancelled with retrospective effect having huge financial implication on the dealer is not fair, reasonable and legal. (12) We have also simultaneously heard the Second Appeal Nos. 1556 to 1558 of 2018 filed against the summary dismissal of First Appeals against assessment orders f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and rejecting the present Second Appeal in case of appellant. According to us, in the circumstances till any decision on assessments is taken if order cancelling permission for composition is allowed to remain in force it will influence the decision of the learned First Appellate Authority. We cannot ignore that the payment made at the rate of 4% on the alleged suppressed sales even before any order was passed against the appellant were made by the appellant, even though there is no written order for such direction therefore, it is very natural that no dealer would make such payment without any indication from the learned Officer. On the other hand, if the learned Officer is directed to take decision relating to cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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