Transit sales exemption turns on proper consideration of Form-C declarations and supporting records before fresh assessment

Assessment orders under the Central Sales Tax Act may be set aside where Form-C declarations and other supporting documents for transit sales exemption were not duly considered. If the assessee is to be given a further opportunity to file records, and those materials must be examined before a fresh order, the proper course is remand rather than sustaining the assessment as it stands. The matter should then be reconsidered on merits after allowing production of the required documents and granting a personal hearing.

---

---

Issues: Whether the assessment orders were liable to be set aside for non-consideration of the Form-C declarations and other supporting documents relating to claim of exemption for transit sales under the Central Sales Tax Act, and whether the matter required remand for fresh assessment after giving the assessee an opportunity to produce additional evidence.

Analysis: The challenge to the assessment was substantially founded on the claim that the documentary materials, particularly the Form-C declarations, had not been properly considered while denying exemption and applying the higher rate of tax. The respondent fairly stated that the assessee could be given one more opportunity to file the required records and that the same could then be examined before passing fresh orders. In view of that concession and the necessity of considering the assessee's documents and affording personal hearing, the impugned assessments could not be sustained as they stood.

Conclusion: The assessment orders were set aside and the matter was remitted to the respondent for fresh assessment after permitting the assessee to produce the required documents and after granting due opportunity of hearing. The assessee succeeded to that limited extent.

Final Conclusion: The writ petitions were disposed of by granting a remand for reconsideration of the assessments on merits, with opportunity to place the supporting materials before the assessing authority.

Ratio Decidendi: Where an assessment is challenged on the ground that relevant statutory declarations and supporting documents were not duly considered, and a fresh opportunity is warranted, the proper course is to set aside the assessment and remit the matter for reconsideration after hearing the assessee.

---