Speaking assessment orders are mandatory when objections are raised; unreasoned tax demands may be set aside and remitted.

Assessment orders reversing input tax credit, levying purchase tax and penalty, and fixing escaped turnover were set aside because they contained no substantive reasoning on the dealer's objections. In a quasi-judicial assessment, the authority must pass a speaking order showing application of mind to the reply to the pre-assessment notice and must address material contentions, including the claimed applicability of the Central Sales Tax regime to the separate turnover assessment. The matter was remitted for fresh consideration, with personal hearing and a reasoned order on merits.

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Issues: Whether the assessment orders reversing input tax credit, levying purchase tax and penalty, and fixing escaped turnover were liable to be set aside for want of reasons and non-consideration of the petitioner's objections.

Analysis: The impugned orders did not contain any substantive reasoning dealing with the objections raised in reply to the pre-assessment notices. In a quasi-judicial assessment, the authority was required to pass a speaking order demonstrating application of mind to the objections before concluding against the dealer. The orders also failed to deal with the contention regarding the applicability of the Central Sales Tax regime to the separate turnover assessment, and the refusal to consider the objections showed absence of a proper factual and legal determination.

Conclusion: The assessment orders were set aside and the matters were remitted to the Commercial Tax Officer for fresh consideration after affording personal hearing and passing a reasoned order on merits.

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