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2012 (2) TMI 463 - HC - VAT and Sales TaxRevision of assessment order - petitioner was treated as liable under section 6A of the 1957 Act by the revisional authority - Held that:- The petitioner was treated as liable under section 6A but without any mention or discussion of his liability under section 6A of the 1957 Act, in the show-cause notice dated September 20, 1994. As established in State of Andhra Pradesh v. Loharu Steel Industries Limited [1994 (11) TMI 408 - ANDHRA PRADESH HIGH COURT] that a revisional authority cannot engraft a liability without notice to the assessee/dealer. Thus order of the revisional authority determining the liability of the revision petitioner under section 6A of the 1957 Act must therefore be held to be unsustainable for transgression of the audi alteram partem principle, particularly in view of non providing an opportunity to show cause against the proposed enhancement. Reasoning of the Tribunal to impose liability under section 6A of the 1957 Act is fallacious as burden is upon assessee to show that they purchased a part of the turnover for milling and the rest for sale. Therefore, if the order of exemption under G.O. Ms. No. 621, dated June 28, 1989 were be restrictively interpreted as confined to the turnover relating to milling by the Federation, then the burden is upon the Federation as an assessee (that the Federation is also a dealer under the provisions of the 1957 Act is not in dispute) to establish that they were in fact in the business of trading as well and had purchased part of the turnover for sale. Tax revision allowed.
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