Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 1193 - HC - VAT and Sales TaxDenial of input tax credit - Validity of assessment order - demand based on defects pointed out by the Enforcement Wing and prepared statement got signed - abdication of the powers of an Assessing Officer and on the principles of violation of natural justice and non application of mind - Held that:- Two things emanate from the observations. Firstly, the Assessing Officer came to the conclusion that there was an admission of the defects, which are seriously disputed by the petitioner. The second is that the Assessing Officer was of the opinion that he is duty bound to accept and implement the audit report. These observations are totally erroneous in the light of the settled legal principles as to how the Assessing Officer has to conduct himself. A report from the Enforcement Wing may be a starting point for issuance of a notice. But, the Assessing Officer, being a Statutory Authority, on issuance of notice proposing revision of assessment, is required to call for objections from the dealer and if the dealer places objections, then the Assessing Officer is duty bound to decide the matter on merits independently unbiased and uninfluenced by any other factor. Therefore, the observation made by the respondent in the impugned orders that he is duty bound to implement the audit report is a perverse observation and deserves to be set aside. Secondly, the admission of guilt, if held to be the sole basis for rejecting the dealer's case, the settled legal principle is that the admission should be candid and unequivocal. In the instant case, the petitioner has not only stated that the pre-prepared statement was compelled to be signed, but also stated that they gave their objections on 5.3.2015 for correction of the statement, which was recorded on 17.2.2015. Writ petitions allowed - order set aside - Matter remanded back. - Decided in favor of petitioner.
|