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2022 (8) TMI 823 - HC - VAT and Sales TaxValidity of assessment order - time limitation for completion of assessment under Section 32 of the DVAT Act - reasons to beleive - In the petitioner’s case, with respect to the financial year in issue i.e., FY 2011-2012, the four-year period expired on 31.03.2016 - HELD THAT:- The Commissioner simply appended his signature on the note prepared on 03.08.2017, without independently applying his mind, as to how the intelligence note which was suggestive of the fact that the petitioner had infracted the CENVAT Credit Rules, 2004, would have a bearing on the matter [concerning the petitioner] which related to transactions under the CST Act and the DVAT Act. The problem got compounded as the Commissioner did not advert to any of the aspects which are prerequisites for triggering the extended period of limitation i.e., as to how the concealment, omission or failure of the petitioner to disclose material particulars, resulted in his formation of belief that tax had not been paid by the petitioner. Reasons are the link between the material that is brought to the notice of the Commissioner and the formation of the belief that tax has not paid by the assessee. Reasons have to be bona fide and honest. Reasons are required to have a rational nexus with formation of belief. Belief should be based on material which relevant and cogent. As a matter of fact, the law casts an obligation on the revenue to inform the assessee in no uncertain words as to the charge against him i.e., as to whether it is a case for concealment, or omission or failure to disclose material particulars or a sum of one or more infractions. There are too many infractions committed by the respondent/revenue in the instant matter; in particular, there has been no, independent, application of mind as to whether this was a case, in which, the extended period of limitation could have been invoked - Petition disposed off.
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