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2014 (3) TMI 657 - HC - VAT and Sales TaxValidity of assessment order - Correctness of the inspection report – opportunity of being heard - Refusal to entertain documentary proofs - Held that:- Before any punitive order is passed, there has to be assessment in reality and that will be possible only on verification of books of account - even if they had found discrepancies, petitioner was entitled to explain and had to be heard personally which the respondent has failed to accord - to support its reply with documentary proof like books of account, etc. it has sought four weeks time, but the revenue refused to accommodate and has proceeded to determine alleged tax liability on the allegation of suppression of facts based on inspection report. When tax is levied, it must be legally recoverable and if the assessee could substantiate that tax liability is not to the extent as assessed, there has to be a true assessment - That is the primary purpose of issuing show-cause notice soliciting reply and then to pass order - It is only when such order is passed after giving opportunity to the assessee, it could be enforced through punitive action, i.e. demand notice – matter remitted back to the department for assessment - Assessee directed to produce books of account and file statement - Decided in favour of assessee.
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