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2021 (9) TMI 720 - HC - VAT and Sales TaxReversal of exemption availed - deduction on 2nd sales of clothes, which was allowed - denial on the ground that appellant has effected the purchase of Yarn from unregistered dealers or Registration Certificate canceled dealers - proposal to revise the turnover and assess the Tax at 4%, after adding 10% towards Freight and Gross Profit - ppellant had challenged the Assessment Order on the ground of unfairness in the action of the statutory authority and on the other grounds of violation of principles of natural justice and non-consideration of the documents which were placed before the authority. HELD THAT:- If these were the grounds raised by the appellant, then it goes without saying that the correctness of the Assessment Order could be tested in a writ petition under Article 226 of the Constitution of India. Thus, we hold that the writ petition was maintainable. Reversal of deduction claimed - HELD THAT:- The Assessing Officer continues to maintain the stand that the whereabouts of the selling dealer are not known and sale bills alone have been issued. This finding is not supported by any document or any report, which was called for and obtained by the Assessing Officer. In such circumstances, it has to be held that the Assessing Officer did not enquire into the matter, particularly, with regard to the aspects pointed out by the appellant that the selling dealer's registration was valid and sale bills have been issued and payments have also been effected by the appellant - If such is the factual position, we need to take note of the legal position as to whether, the appellant is required to prove that the selling dealer had paid taxes. The Hon'ble Division Bench pointed out that, admittedly, the Registration Certificates of the selling dealers were in force and their services were not canceled and there is no explanation on the side of the Revenue for not examining the selling dealers. Further, dealing with the issue that the bills were bogus, the Division Bench pointed out that, in the bills, the Registration Number and names of the sellers were given, but the Department failed to identify the sellers and make them available for cross-examination. In the case on hand also, the Assessing Officer took no steps to enquire into the matter, pursuant to the objections filed by the appellant. Also, in the present case, the Assessing Officer took no steps to enquire into the matter, pursuant to the objections filed by the appellant - the revision of assessment made on the appellant is not sustainable in law - petition allowed.
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