Reassessment show cause notice upheld where reasons were disclosed and no pre-conceived mind was shown.

Section 16 of the Tamil Nadu General Sales Tax Act permits reassessment where turnover has escaped assessment, but the notice must disclose the prima facie reasons so the dealer can respond effectively. Here, the show cause notice set out the business particulars, inspection materials, proposed revision for the relevant assessment year, and invited objections, documents, and a personal hearing. Read as a whole, it reflected only a proposal based on a preliminary basis for action, not a concluded finding against the dealer. The isolated remark suggesting suspicion about the transaction's bona fides did not show a pre-conceived or foreclosed mind. The notice was therefore upheld and not quashed.

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Issues: Whether the show cause notice issued for revision of assessment under section 16(1) of the Tamil Nadu General Sales Tax Act, 1959 was liable to be quashed on the ground that it disclosed a pre-conceived or foreclosed mind.

Analysis: Section 16 permits reassessment where turnover has escaped assessment, but the authority must disclose in the notice the reasons that led to the prima facie conclusion so that the dealer can effectively meet the proposal. The notice in question set out the business details, the inspection materials, the proposed revision for the relevant assessment year, and called for objections and supporting documents, together with an opportunity of personal hearing. On a reading of the notice as a whole, it contained only proposals and a prima facie basis for action, and not a concluded determination against the dealer. The alleged observation regarding suspicion on the bona fides of the transaction did not show any closed or predetermined mind.

Conclusion: The show cause notice was valid and was not liable to be quashed.

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