Delayed statutory forms and fair hearing requirements can justify reopening an assessment and invalidate penalty imposition.

Where the governing inter-State sales rules permit delayed filing of Forms C and F on sufficient cause being shown, the assessing authority must consider a request for reopening on that basis and cannot reject it merely because the forms were produced after assessment. The assessment order was also unsustainable because penalty was imposed without prior proposal and without affording the petitioner an opportunity to respond. The HC quashed the assessment and remitted the matter for fresh decision on merits after hearing the petitioner.

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Issues: Whether the assessing authority was bound to consider the petitioner's belated production of Forms C and F and the request for reopening of the assessment on showing sufficient cause, and whether the impugned assessment order and penalty could be sustained without affording an opportunity.

Analysis: The assessment concerned inter-State sales for which exemption or concessional treatment depended upon statutory declarations in the prescribed forms. The provisions governing inter-State sales and the registration and turnover rules contemplate furnishing of Forms C and F within the prescribed time, but also empower the prescribed authority to accept them within a further time if sufficient cause is shown. On that framework, the refusal to consider the petitioner's request for reopening merely because the forms were produced after the assessment was not justified. The order was also vitiated because penalty was imposed without a prior proposal and without opportunity to the petitioner. The authority was therefore required to examine whether sufficient cause existed and then pass a fresh order on merits.

Conclusion: The refusal to reopen the assessment and consider the statutory forms was unsustainable, and the matter had to be reconsidered after giving the petitioner an opportunity.

Final Conclusion: The writ petition succeeded, the assessment order was quashed, and the matter was remitted for fresh decision in accordance with law after hearing the petitioner.

Ratio Decidendi: Where the governing rules permit delayed filing of statutory declaration forms on sufficient cause being shown, the assessing authority must consider the request on that basis and cannot refuse reassessment without affording a fair opportunity.

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