TMI Blog1994 (11) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the petitioner was not afforded a reasonable opportunity by the Assessing Authority to prove its case. The petitioner (hereinafter referred to as "the dealer") is a proprietorship concern which carried on the business of sale and purchase of watches at Batala, District Gurdaspur in the State of Punjab and was registered as a dealer with the Assessing Authority, Batala, under the State Act and the Central Act. The Assessing Authority, Batala, had reason to believe that the dealer made purchases of goods worth lacs of rupees from M/s. Hyderabad Allwyn Ltd., SCO No. 371-72, Sector 35-D, Chandigarh, during the period from May 31, 1984 to July 31, 1984 but the returns filed by the dealer during 1984-85 did not show the correspo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sales and the details of the demand drafts as well as cheques were also given in the affidavit. Shri R.N. Sikka also filed along with his affidavit the photo copies of the acknowledgements of receipt of goods in question showing that the goods had been duly received by the dealer. The receipts are alleged to have been signed by the proprietor of the dealer-firm. He also filed photo copies of agreement/guarantee bond and promissory note signed by the proprietor of the dealer and also a photo copy of the civil suit filed by M/s. Hyderabad Allwyn Ltd., against the dealer for the recovery of the balance amount due to it. As already observed earlier, the dealer had also filed an affidavit categorically stating therein that it made no purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheques, promissory notes, etc., were made by the dealer himself and not by Hyderabad Allwyn Ltd., Chandigarh." The Assessing Authority then relying upon the affidavit of Shri Sikka and the photo copies of the receipts allegedly issued by the dealer came to the conclusion that the dealer had entered into a contract of trade with M/s. Hyderabad Allwyn Ltd., Chandigarh and received goods from them against payments. It was further held that the dealer failed to file its quarterly return after December 31, 1984 and suppressed purchases made from M/s. Hyderabad Allwyn Ltd., leading to massive evasion of tax and for this reason, the registration certificates of the dealer both under the State Act as well as the Central Act were cancelled. Feel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the said Shri Sikka in fact related to the dealer itself. In our opinion, this was not the right approach. The Assessing Authority which was discharging quasi-judicial functions was seeking to rely upon the affidavit of Shri Sikka and the photo copies of the alleged receipts acknowledging the receipt of goods by the dealer without having a look at the originals. All this material was being produced from a third party and, therefore, the assessee was entitled to have Shri R.N. Sikka summoned as a witness for cross-examination as that is one of the most efficacious methods for establishing truth and exposing the falsehood. May be, the assessee could have succeeded in proving that the documents produced by Shri Sikka had not been signed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party while in some other case it may not be necessary. In the facts and circumstances of the present case, we are of the opinion that the dealer should have been allowed to cross-examine Shri Sikka. Since Shri Sikka was not allowed to be cross-examined, we hold that the assessee was not afforded a reasonable opportunity of being heard within the meaning of section 7(4) of the State Act. In the result, the writ petition is allowed. The order of the Assessing Authority dated November 23, 1990 and the order of the Sales Tax Tribunal dated March 31, 1992 (annexures P9 and P12 with the writ petition) are set aside and the case is remanded to the Assessing Authority with a direction to permit the assessee to cross-examine Shri R.N. Sikka and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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