Failure to consider material reply and supporting evidence vitiates revisional order on concessional inter-State sales tax treatment.

A revisional order rejecting concessional tax treatment on inter-State sales was vitiated because the authority did not properly consider the assessee's reply to the show-cause notice and supporting material. The assessee had relied on a letter from the purchasing dealer's assessing authority stating that the relevant C forms were issued by the department, but the impugned order failed to deal with this specific contention. The HC held that such non-consideration of material on record made the decision-making process defective. The revisional order was set aside and the matter remanded for fresh consideration on the merits after due examination of the reply and supporting letter.

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Issues: Whether the revisional order rejecting concessional tax treatment on inter-State sales was vitiated for consideration of the assessee's reply and supporting material, warranting remand.

Analysis: The assessee had placed on record a reply to the show-cause notice together with a letter from the purchasing dealer's assessing authority asserting that the relevant C forms were issued by the department. The revisional authority extracted the reply but did not meet the specific contention that the letter supported the genuineness of the forms. Since the impugned order proceeded without dealing with this material, the decision-making process was found to be defective and contrary to fair consideration of the record.

Conclusion: The revisional order was set aside and the matter was remanded for fresh consideration after taking into account the reply and the supporting letter. The issue was decided in favour of the assessee.

Final Conclusion: The challenge succeeded to the extent of securing quashing of the revisional order and a fresh decision on the merits after due consideration of the material placed by the assessee.

Ratio Decidendi: An order that fails to consider a material reply and supporting evidence placed by the affected party is vitiated and cannot be sustained.

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