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2019 (1) TMI 162 - HC - VAT and Sales TaxReversal of Input tax credit - mismatch of return particulars between Annexure I and Annexure II of selling and buying end dealers - opportunity of personal hearing not allowed - principles of natural justice - Held that:- The show cause notices are bereft of particulars regarding the name and/or trade identification number (TIN) number of the dealer at the other hand. It is stated that cross verification of buyer and seller is made through Web. But, web report was not enclosed. Unless the intranet web report along with all details are furnished, the purchaser would not be in a position to reconcile the mismatch. Therefore, the manner on which the show cause notices issued deserves interference. It is very unfortunate that the assessing officers have either totally ignored the Circular issued by the Commissioner of Commercial Taxes and the procedures - If the selling dealer fails to pay tax, action has to be taken only against the selling dealer and not against the purchasing dealer. The web report or the data maintained by the Department is only a starting point, based on which, the authority has to enquire and proceed further. They have to call for objections by giving the requisite details, give an opportunity of personal hearing, verify the records maintained by the dealers on either side as well as the records of the Department. Without doing so, the Department cannot fasten the liability on any one of the arm of a sale proceeding. This Court is of the view that all the matters should be remanded for fresh consideration - petition allowed by way of remand.
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