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2015 (12) TMI 1197 - DELHI HIGH COURTLiability to tax - Taxability under DVAT or CST Act - no notice of reassessment under Section 32 of the DVAT Act was issued - Whether a transaction can be taxed twice, once under the Delhi VAT Act as intra-State sale in the State of Delhi and again as interstate sale under the CST Act - Held that:- It requires the Assessee to appear before the VATO on 19th September 2011 for recording his statement, produce his book of accounts and evidence being relied upon by him. It requires him to produce a host of documents including the “record of interstate sales and transfer of goods along with statutory declaration form, supporting documents regarding export sales...", "GR/RRs, Form-4 and Form-7 and copy of returns and balance sheet with audit report.” A second document in this compilation is a notice dated 19th October 2011 issued by the VATO to the Assessee noting that the Assessee had appeared and sought time from the VATO till 23rd September 2011 for filing the documents and given the Assessee a final opportunity of submitting the requisite documents by 31st October 2011. In light of the documents that have been emerged during the course of the present hearing and which the Appellant claims not to have received earlier, and since these documents have a vital bearing on the validity of the assessments initially made and the reassessment made subsequently, the Court considered it appropriate to remand the matter to the VATO for a de novo re-assessment proceeding after giving the Appellant a proper opportunity to explain the materials now placed on record. - if it is able to be established by the Department that an audit did take place in accordance with Section 58 of the DVAT Act and the audit report showed that the Appellant was not entitled to avail of the benefit of the C-Forms and H-Forms produced by him in support of the claim of interstate and export sales, that would go to the very root of the matter and render the initial assessment made under Section 9(2) of the CST Act unsustainable in law. Appellant has been given all the documents, which the counsel for the Respondent assures form part of the record, there should be no difficulty in the VATO proceeding further in the matter on the basis of the said documents. Nevertheless, to allay the concerns expressed by counsel for the Appellant, the Court directs that the VATO will ascertain whether the documents that have been produced before this Court do form part of the record of the assessment and re-assessment. The VATO will give the Assessee an inspection of the original files of the Department containing the said documents. - Impugned order is set aside - matter remanded back.
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