1982 (2) TMI 294 - HC - VAT and Sales Tax

Court quashes notice for reassessment due to lack of disclosure violating principle, petitioner's challenge accepted.

DM Oil and General Industries Versus Assessing Authority-Cum-Additional Excise and Taxation Officer

The court quashed the notice under section 11-A of the Punjab General Sales Tax Act for reassessment as it lacked disclosure of material for reassessment, ... - Issues:Challenge to notice under section 11-A of the Punjab General Sales Tax Act for reassessment based on under-assessment grounds.Analysis:The petitioner-firm, engaged in crushing oilseeds, challenged a notice under section 11-A of the Punjab General Sales Tax Act for reassessment. The notice required the petitioner to appear based on information suggesting under-assessment. The petitioner relied on a previous court ruling emphasizing the necessity of disclosing additional information before taking action. The court agreed that the impugned notice did not disclose any material for reassessment, violating the principle of disclosure. The court quashed the notice and allowed the writ petition without costs due to non-appearance of respondents.Judgment by M.R. SHARMA, J.:In a separate judgment, a petitioner-firm selling ghee challenged a notice for revision of assessment based on new information collected by the Enforcement Branch. The petitioner argued that the notice lacked specificity on the points of revision, hindering their ability to respond adequately. The court agreed with the petitioner's counsel, emphasizing the importance of disclosing grounds for revision in advance. Despite the respondent's argument that the revisional authority was yet to decide on the information to rely upon, the court found this unsatisfactory. The court accepted the petition, quashed the notice, and left room for further action with a fresh notice if deemed necessary, without costs.