Disclosure of seized records and pre-finalisation hearing required in assessment proceedings, but limitation objection barred

Proceedings under the KGST Act at the stage of finalisation required disclosure of the relevant seized records and a meaningful opportunity of hearing before completion. The petitioner was to be supplied copies of the relevant documents at his cost within the stipulated time, and the authority could finalise the assessment only after verifying the records and hearing the petitioner on the facts and figures. The petitioner was, however, expressly barred from raising a limitation objection in relation to the assessment to be finalised.

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Issues: Whether the petitioner was entitled to copies of the relevant records and an opportunity of hearing before finalisation of the proceedings initiated under Section 17D of the KGST Act, and whether the petitioner could raise a plea of limitation in relation to the assessment.

Analysis: The proceedings were already at the stage of finalisation and the petitioner sought copies of the relevant seized documents so as to place the necessary materials before the authority. The Court directed that copies of the relevant documents be supplied to the petitioner at his cost within the stipulated time and that the 5th respondent finalise the proceedings only after verifying the records and affording an opportunity of hearing to the petitioner to produce all relevant records and explain the facts and figures. The Court also made it clear that the petitioner would not be entitled to raise a plea of limitation in respect of the assessment to be finalised.

Conclusion: The petitioner was granted access to the relevant records and a hearing before finalisation of the assessment, but was barred from raising a limitation plea.

Final Conclusion: The writ petitions were disposed of with directions ensuring disclosure of records and observance of hearing before completion of the tax proceedings, while excluding any limitation-based objection.

Ratio Decidendi: Where assessment proceedings are to be finalised, fairness requires supply of the relevant records and an opportunity of hearing before decision, but the court may also curtail a limitation objection in the facts of the case.

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