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2016 (12) TMI 819 - GUJARAT HIGH COURTAssessment of high value transactions - Government Representative Cell (GR Cell) to represent the case before the AO before adjudicating the case - Legality of circular dated 30.07.2016 - Held that: - On considering and going through the Circulars it appears that they are issued with a view to see that there is a proper and fair government representation before the Assessing Officer / Adjudicating Officer and more particularly in the case of high value cases. The Circulars have been issued to protect the interest of the Revenue and the public exchequer. It cannot be disputed that as per the old practice there was no independent representation on behalf of the government. The dealers were represented through their consultant / Advocates. Therefore, strictly speaking the entire burden was upon the Assessing Officers. The Assessing Officers though being quasi judicial officers can be said to be representing the case of the Department also. Therefore, with a view to see that there is a proper government representation before the Assessing Officer / Adjudicating Officer like before the High Court and the Tribunal, it has been decided to form the GR Cell who after considering the material on record including the submissions made on behalf of the dealer would prepare the case in consultation with the Authorities forming part of the GR Cell and the same are required to be produced before the Assessing Officer / Adjudicating Officer and the Circulars further provide that thereafter the Assessing Officer / Adjudicating Officer is required to pass a speaking and reasoned order after considering the submissions made on behalf of the Government as well as made on behalf of the Dealer - From the procedure which is provided under the Circulars, it cannot be said that there is any external interference in exercise of quasi judicial functions by the Assessing Officers / Adjudicating Officers - the challenge to the impugned Circulars dated 30.07.2016 fails. Requirement of sending the case papers to the respondent No.1 for preaudit - Held that: - the same is liable to be quashed and set aside in light of the decision of this Court in the case of M/s. Tanuj Agency Pvt. Ltd. [2016 (6) TMI 727 - GUJARAT HIGH COURT], where it was held that the procedure adopted by the department was wholly unauthorised and impermissible in law. To be bound by an order of higher authority in an administrative set up is entirely different from the discretion of a statutory authority being governed by an outside agency. Impugned action on the part of the first Appellate Authority to send the draft order to the higher Authority for preaudit is hereby quashed and set aside - challenge to circular fails - decided partly in favor of petitioner.
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