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2023 (8) TMI 844 - MADRAS HIGH COURTDetermination of appellant's turnover under Section 3-B of the TNGST Act 1959 - levy of penalty under Section 16(2) of the Act - revision of assessment on the basis of third party records - assessment confirmed on the basis of information collected from the place of business of a third party that too when those information reveal only the commission received by the said third party, for the invoices allegedly raised in the name of the appellant - burden to prove - violation of principles of natural justice. HELD THAT:- Admittedly, the assessments of the appellant have been revised based upon certain records said to have been seized by the Enforcement Wing from the Photo Marketing Service in Chennai which is said to have revealed that the assessee had purchased the goods vide six invoices from one Jindal Photo Films, New Delhi. Therefore, it is clear that the assessments have been revised based upon third party documents and not based upon any inspection conducted in the premises of the assessee. The authorities have failed to furnish a copy of the said third party document to the assessee, especially when the assessee has taken a stand that their names and registration number have been misused by some one to evade tax. No opportunity has been provided to the assessee to cross examine the said third party. Therefore, it is clear that the entire revision of assessment has been made based on documents which have been screened from the purview of the assessee. On the other hand, the burden has been fixed upon the assessee to prove the negative that he did not have any transaction with those third party entities. The orders of the authorities are clearly in violation of the principles of natural justice and they are liable to be set aside and accordingly, set aside - All the substantial questions of law are answered in favour of the appellant - Appeal allowed.
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