Reassessment reopening requires written disclosure of reasons and material when sought by the dealer before adverse use.

In reassessment proceedings under section 12(8) of the Orissa Sales Tax Act, the initial notice need not state the reasons for reopening, but if the dealer appears and seeks disclosure, the assessing officer must give the reasons and the material proposed to be relied on in writing before using that material against the dealer. The existence of a genuine belief to reopen is open to examination, but the sufficiency of the grounds is not justiciable, provided the belief is held in good faith and not as a pretence. The dealer was therefore entitled to written disclosure of the reopening basis and adverse material.

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Issues: Whether, in proceedings under section 12(8) of the Orissa Sales Tax Act, 1947, the assessing officer was required to communicate the reasons and material for reopening to the dealer after the dealer appeared and sought such disclosure.

Analysis: The statutory notice under section 12(8) need not itself record the reasons for reopening. However, where the dealer appears and participates in the proceeding and seeks the basis of reopening, the assessing officer must disclose in writing the reasons and the material proposed to be relied upon before using that material against the dealer. The existence of the belief to reopen can be examined, but not the sufficiency of the grounds, which is not justiciable. The belief must nevertheless be held in good faith and not as a pretence.

Conclusion: The dealer was entitled to written communication of the reasons necessitating reopening and the materials proposed to be used, and the writ petition was disposed of with that direction.

Ratio Decidendi: While reasons for reopening need not be stated in the initial notice, they must be disclosed to the dealer when sought during the reassessment proceeding before adverse material is relied upon, so that an effective opportunity to meet the case is afforded.

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