Communication of recorded reasons is essential for retaining seized documents beyond one year under sales tax law.

Retention of seized books of account and documents beyond one year under proviso (b) to section 14(3A) of the Bengal Finance (Sales Tax) Act, 1941 required written reasons by the officer and written sanction by the superior authority. The requirement was meaningful only if the recorded reasons were communicated to the person from whom the materials were seized. Non-communication was treated as contrary to natural justice and as making the retention arbitrary. The defect was not cured merely because the sanction order referred to a similar reason, and the record did not show proper application of mind by the sanctioning authority.

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Issues: Whether the retention order authorising continued seizure of books of account and documents beyond one year was valid when the reasons recorded by the officer seeking sanction were not communicated to the assessee.

Analysis: Under proviso (b) to section 14(3A) of the Bengal Finance (Sales Tax) Act, 1941, retention of seized materials beyond one year required the officer to state reasons in writing and obtain written sanction of the superior authority. The requirement of recording reasons was held to be meaningful only if those reasons were communicated to the person from whom the documents were seized. Non-communication was treated as contrary to natural justice and as rendering the retention decision arbitrary. The absence of communication could not be cured by the fact that the sanction order itself mentioned a similar reason, and the record also did not show due application of mind by the sanctioning authority.

Conclusion: The retention order was invalid and had to be set aside for non-communication of the recorded reasons.

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