Independent reassessment findings required under VAT law; a third-party show cause notice alone cannot justify additions or sustain the order.

A reassessment under the Gujarat Value Added Tax Act, 2003 cannot be sustained merely because the Excise Department issued a show cause notice; the assessing authority must independently examine relevant material and form its own conclusion that there was clandestine removal or VAT escapement before making additions. Because the reassessment rested only on that external notice and lacked independent factual or legal foundation, it was held unsustainable and quashed. Writ jurisdiction was also treated as available despite an appellate remedy where the impugned order was ex facie illegal.

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Issues: Whether a reassessment order under the Gujarat Value Added Tax Act, 2003 could be sustained when it was founded only on a show cause notice issued by the Excise Department, and whether writ jurisdiction could be invoked despite availability of an appellate remedy.

Analysis: The reassessment was made solely on the basis of the Excise Department's show cause notice, without any independent inquiry or conclusion by the assessing authority that there was clandestine removal of goods or escapement of VAT. Mere issuance of a show cause notice by another department could not, by itself, justify additions under the VAT Act. The Court also treated the case as fit for writ interference because the impugned order was ex facie unsustainable in law, notwithstanding the alternative statutory remedy.

Conclusion: The reassessment order was not sustainable and was quashed.

Final Conclusion: The petitioner succeeded, the impugned reassessment was set aside, and the department was left free to proceed afresh in accordance with law if permissible.

Ratio Decidendi: A reassessment under VAT law cannot rest merely on a third-party show cause notice; the assessing authority must form an independent opinion on the basis of relevant material before making additions.

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