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2009 (4) TMI 850 - HC - VAT and Sales TaxWhether show-cause notices do not mention the basis on which the turnovers mentioned therein were sought to be taxed ? Whether the petitioner was denied an opportunity of effectively putting forward their defence thereagainst? Held that:- The show-cause notice should reflect the jurisdictional facts based on which the final order is proposed to be passed. The assessee would then have an opportunity to show cause that the authority had erroneously assumed existence of a jurisdictional fact and, since the essential jurisdictional facts do not exist, the authority does not have jurisdiction to decide the other issues. This requirement is also absent in the show-cause notices issued in the present case. Viewed from any angle, failure to indicate the basis for levy of tax under the A.P. VAT Act in the show-cause notice on, among others, the turnover of ₹ 815.52 crores falls foul of the audi alteram partem rule necessitating the impugned assessment order being set aside on the ground of violation of the principles of natural justice. W.P. allowed.
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