Administrative transfer of sales tax assessment files upheld where no prejudice arose and prior hearing was not mandatory on the facts.

The Karnataka HC treated transfer of sales tax assessment files as an administrative measure under rule 59 of the Karnataka Sales Tax Rules, 1957, read with section 3-B(3)(a) of the Karnataka Sales Tax Act, 1957. It held that, on the facts, the transfer did not cause prejudice or hardship to the dealer, particularly because the assessment proceedings were to be held at Belgaum at the assessee's request. In that setting, the absence of a prior hearing did not vitiate the transfer order, and the Commissioner's power to transfer the assessment file was upheld.

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Issues: Whether the Commissioner's order transferring the assessee's assessment files under the Karnataka sales tax law was invalid for want of prior hearing.

Analysis: The power of transfer was exercised under rule 59 of the Karnataka Sales Tax Rules, 1957, read with the statutory authorisation under section 3-B(3)(a) of the Karnataka Sales Tax Act, 1957. The transfer of assessment proceedings was treated as an administrative measure. The Court distinguished the income-tax decisions relied upon, noting that under the sales tax scheme the transfer did not, on the facts, cause prejudice or hardship to the dealer, especially as the assessment proceedings were to be held at Belgaum at the assessee's request. In that setting, the absence of a prior hearing did not vitiate the transfer order.

Conclusion: The Commissioner's power to transfer the assessment file was upheld, and prior hearing was not held to be mandatory on the facts.

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