TMI Blog2019 (4) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... received by him to form basis for investigation. This fact is further established when despite the order dated 04/08/2016, the respondent has failed to keep the original file present at the time of hearing for perusal of this Court to ensure whether any reason has been recorded by the Commissioner before issuing directions under Section 55(1) of the Act of 2002. The provisions as adverted supra being mandatory, non compliance thereof, vitiated the entire proceedings. Thus when the foundation is found to be defective, the entire superstructure must crumble. The investigation, assessment thereof, the First and Second Appellate order are quashed - Appeal allowed - decided in favor of appellant. - VATA-4-2011 - - - Dated:- 11-4-2019 - Sanjay Yadav And Vivek Agarwal JJ. For the Appellant : Shri Arvind Dudawat, learned counsel For the Respondents/State : Shri Pratip Visoriya, learned Government Advocate ORDER This Appeal under Section 53 of the Madhya Pradesh Value Added Tax Act, 2002 (hereinafter referred to as Act of 2002 ) is directed against the order dated 08/02/2011 passed by Madhya Pradesh Comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitation goods and pipe fittings, respectively taxable @ 12.5% (Scheduled II Part IV, Entry No.1) and 4% (Scheduled II Part II Entry No.64). 4. On 02/07/2007, in search at trading place and room behind it, godown opposite to trading place in the house of Shri Rammohan Parwal, Bhau Ka Bazar, godown at Geeta Market Bhau Ka Bazar Lashkar, following unaccounted stock at trading place and at undeclared and unrecorded godown worth of ₹ 11,50,426.00/- was found: 1 Estimated cost of physical stock of material found at business place and in the room behind it Rs.493408/- 84718/- 2 Estimated cost of material found in the godown situated in opposition of business place Rs.34805/- 3 Estimated cost of material found in the house of Shri Rammohan Parwal situated at Bhau Ka Bazar Rs.496750/- 4 Estimated cost of material found in the godown s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Appellate Authority, Deputy Commissioner Commercial Tax Gwalior. Whereagainst Second Appeal preferred before Appellate Board was dismissed by the order impugned herein. 9. In these fact situation, the proposed substantial question of law arises. 10. The first question is whether the Commissioner, Commercial Tax recorded prior reasons as contemplated under Sub-section (1) of Section 55 and whether there was proper delegation to the Subordinate Authorities to carry out the search operation. 11. Sub-section (1) of Section 55 of Act 2002 mandates that If upon any information which has come into the knowledge of Commissioner and he has reason to believe that any dealer has evaded payment of tax or is indulging in evasion of tax under this Act or under the Act repealed by this Act, for reasons to be recorded in writing, he may direct any of the officers referred to in clauses (c) to (h) of sub-section (1) of section 3 to proceed to investigate into the tax evasion by such dealer . Evidently, the provision is in two parts, firstly, recording of reasons upon receiving an information that any dealer has evaded payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsustainable claim and disclosed the reasons The question whether these reasons have any nexus with the interests of the general public or they are extraneous and irrelevant is a matter which we shall examine when we deal with the arguments of the parties, ,Meanwhile, proceeding further with the resume of the relevant provisions, reference may be made to section 11 which provides for an appeal inter alia against the order impounding or revoking a passport or travel document under sub-section (3) of section 10. But there is a proviso to this section which says that if the order impounding or revoking a passport or travel document is passed by the Central Government, there shall be no right to appeal. These are the relevant provisions of the Act in the light of which we have to consider the constitutionality of sub- section (3) (c) of section 10 and the validity of the order impounding the passport of the petitioner. 13. In M/s Ajantha Industries and Ors. vs. Central Board Of Direct Taxes New Delhi Ors.[AIR 1976 SC 437] dwelling on the issue arising from Section 127(1) of Income Tax Act, 1961 as to whether failure to record reasons in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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