2016 (11) TMI 413 - HC - VAT and Sales Tax

Court affirms Tribunal's decision to remand for thorough assessment based on suppressed purchases & accurate turnover determination.

M/s Hariom Paper (A Unit Of M/s Tehri Pulp & Paper Ltd.) Versus The Commissioner Commercial Tax

The Trade Tax Tribunal's decision to remand the matter back to the assessing officer for a thorough assessment was upheld by the court. The Tribunal ... Revision of assessment - evaded turnover - suppression of facts - Held that: - the Tribunal observed that to determine the evaded turnover on the basis of suppressed purchases of waste paper, applying the ratio between purchases of raw material and final product as disclosed by the assessee, opportunity is necessary to be afforded to the assessee and consequently, the matter deserves to be remanded to the assessing officer for assessment. I do not find any infirmity in the order of remand passed by the Tribunal inasmuch as the assessing officer would be best placed to consider all the evidences on record and evidences which may be led by the assessee so as to appropriately determine the manufacture and sales of the assessee. Under the circumstances, the revisions deserve to be dismissed and the questions of law as framed above, deserve to be answered against the assessee and in favour of the respondent - revision failed - the AO shall pass speaking and reasoned assessment orders in accordance with law after considering the reply and the evidences which may be led by the assessee - decided in favor of respondent. Issues:1. Legality of remanding matter to assessing officer by Tribunal for determining turnover.2. Justification of remand by Tribunal when all material and evidence were available.Analysis:1. The case involved the assessment year 1997-1998 where the applicant, engaged in craft paper manufacturing, was found to have suppressed purchases of waste paper. The assessing authority determined turnover and made additions. The applicant appealed, and the First Appellate Authority partly allowed the appeals. Subsequently, the matter went to the Trade Tax Tribunal which remanded it back to the assessing authority for fresh assessment. The applicant contended that the Tribunal should have decided the controversy instead of remanding it. However, the Tribunal justified the remand based on the evidence of suppressed purchases and the need for redetermination of evaded production and sales. The court upheld the Tribunal's decision, emphasizing the assessing officer's role in considering all evidence to determine the manufacture and sales accurately.2. The evaded purchases of waste paper and bagasse were supported by evidence, and the assessing authority had submitted a report indicating the evaded turnover. The First Appellate Authority did not determine the quantity of final product manufactured from the suppressed purchases but made ad-hoc additions to the turnover. The Tribunal observed discrepancies in the assessing authority's report and the need to afford the assessee an opportunity to present evidence. Therefore, the Tribunal's decision to remand the matter for proper assessment was deemed appropriate. The court found no fault in the Tribunal's order, emphasizing the importance of the assessing officer's role in considering all evidence and determining the actual turnover accurately.In conclusion, the court dismissed the revisions, affirming the Tribunal's decision to remand the matter to the assessing officer for a thorough assessment. The court clarified that the assessing officer should pass reasoned assessment orders after considering all evidence presented by the assessee, without being influenced by any previous observations.