Quasi-judicial tax determination must be reasoned, inquiry-based and fair; unreasoned classification order was quashed and remanded.

Section 105 of the Assam Value Added Tax Act, 2003 empowers the Commissioner to determine disputed tax liability, rate and classification as a quasi-judicial function, so the determination must follow a hearing, necessary inquiry, consideration of relevant material and a reasoned decision showing application of mind. An order passed without meaningful reasons, without proper inquiry and without giving the assessee a fair opportunity to place material on record is unsustainable. The impugned tax determination order was quashed, and the matter was remanded for fresh consideration on merits after hearing the assessee and allowing production of material.

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Issues: Whether the tax determination order under Section 105 of the Assam Value Added Tax Act, 2003 could be sustained when it was passed without an inquiry, without meaningful reasons, and without a proper opportunity for the assessee to place material on record.

Analysis: Section 105 confers quasi-judicial power on the Commissioner to determine disputed questions of tax liability, rate, and classification. The provision contemplates a hearing, an inquiry where necessary, consideration of relevant material, and a reasoned determination based on the record. A determination made under that section must therefore disclose application of mind and the basis on which the conclusion is reached. The impugned order did not show that such procedural requirements were followed and did not contain adequate reasons explaining why the commodity was treated as taxable at the higher rate. The order was therefore found unsustainable.

Conclusion: The writ petition was allowed, the impugned tax determination order was quashed, and the matter was remanded to the Commissioner for fresh on merits after giving the petitioner an opportunity to produce material and be heard.

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