TMI Blog2016 (10) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... of the parameters specified in sub-section 9 to section 19, all being questions of fact, have to be established by the dealer when called upon by the authority. However, to decide the question, first of all the respondent should have called upon the dealer to explain their process and furnish all their books of accounts. Thus, the assessment proceedings having been made in a very summary manner, the same calls for interference. The impugned assessment orders made in a very summary manner without affording reasonable opportunity to the petitioner to put forth their submission and explain the nature of transactions - matters remanded to the respondent to re-do the assessment afresh after affording an opportunity of personal hearing, callin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. Therefore, it has to be decided as to whether the impugned orders suffer from violation of principles of natural justice. To test as to the nature of relief that the petitioner would be entitled to, the following facts would be relevant. 3. The petitioner is a Private Limited Company incorporated under the Companies Act, 1956, engaged in the activity of manufacture and sales of articles of jewellery of gold, silver and other special metal and the said company is an assessee on the file of the respondent. On 04.11.2009 the officials of the Enforcement Wing conducted an inspection in the place of the petitioner. Thereafter, the petitioner stated that the assessment for the relevant years was completed under Section 22(2) of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the demand under Section 19(4), it was lower than what was contemplated in the earlier notice dated 15.04.2013. Opportunity of personal hearing was afforded vide notice dated 06.11.2015. The petitioner submitted their reply and marked copies of reply dated 16.10.2013 and 02.12.2013 respectively and requested the personal hearing to be fixed some time in January 2016. The respondent directed the petitioner to appear before him within 15 days of the receipt of the notice dated 21.12.2015. The petitioner in the meantime, submitted a reply on 28.12.2015 to the notice dated 25.10.2015 which was based upon the VAT Audit which was conducted on 31.08.2015. However, up to April 2016, there was a stalemate in the matter and on 28.04.2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.04.2016 and immediately thereafter, an order has been passed, within a short span of time, especially when there were intervening holidays due to the week end. Thus, it is evidently clear that the assessment has been completed without proper dialogue and discussion. So far as the process loss is concerned, this Court had an occasion to consider as to how the process loss has to be ascertained and it deprecated the practice of the Assessing Officer in adopting an ad-hoc percentage. In fact, when the petitioner submitted his reply on 16.10.2013 they took a stand that the entire inputs purchased by the petitioner on payment of VAT are used in the manufacture of jewellery. Alternatively, they stated that an ad hoc percentage of 8% should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner, the same calls for interference. 5. So far as the other two writ petitions are concerned, viz., for the assessment years 2010-2011 and 2011-2012 the facts are some what identical and in these cases the petitioner while submitting their reply on 28.12.2015 specifically sought for a personal hearing and after about four months, the impugned orders have been passed alleging non reconciliation of the details, there was no hearing afforded, no opportunity given to the petitioner to do any reconciliation. Thus, in both set of cases, this Court is convinced that the impugned assessment orders have been made in a very summary manner without affording reasonable opportunity to the petitioner to put forth their submission and explain the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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