Pre-complaint show-cause notice valid where audit officer detects prima facie tax offence and no exclusive complaint procedure exists.

An officer conducting a statutory audit under the West Bengal Value Added Tax framework may issue a pre-complaint show-cause notice where a prima facie tax offence is detected, because the Act and Rules do not prescribe an exclusive procedure reserving complaint initiation to the Commissioner alone. The additional opportunity to explain is a procedural safeguard for the dealer, not a statutory precondition to later police complaint action. The tribunal therefore held that the Assistant Commissioner had authority to seek an explanation before proceeding further, and the notice was not invalid for want of jurisdiction.

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Issues: Whether the Assistant Commissioner conducting the audit had authority to issue a show-cause notice before taking steps for lodging a police complaint in respect of alleged offences under the West Bengal Value Added Tax Act, 2003, and whether such pre-complaint notice was illegal or without jurisdiction.

Analysis: Section 43 of the West Bengal Value Added Tax Act, 2003 and Rule 54 of the West Bengal Value Added Tax Rules, 2005 govern statutory audit by the auditing authority. Section 93 of the Act treats wilful attempt to evade tax and wilful production of incorrect accounts or documents as offences, and also makes such offences cognizable and non-bailable. The Court noted that the Act and the Rules do not prescribe any exclusive statutory procedure requiring only the Commissioner to lodge a complaint, nor do they prohibit an officer who detects the alleged offence from initiating the process. The Assistant Commissioner, having formed a prima facie belief during audit, was therefore entitled to seek an explanation before moving further in accordance with any administrative procedure for lodging complaint with the police. The additional opportunity of hearing was held to be only for the benefit of the dealer and not a statutory precondition.

Conclusion: The notice was valid and not vitiated by lack of authority or jurisdiction. The challenge to the notice failed.

Ratio Decidendi: In the absence of a statutory prohibition or exclusive procedure, an officer detecting a cognizable tax offence may issue a pre-complaint show-cause notice and seek an explanation before initiating further action.

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