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of <h1>Court directs fresh assessment ensuring dealer presence for cross-examination. Importance of fair procedures under TNGST Act emphasized.</h1> <h3>M/s. Chemi Allied Products Versus The Commercial Tax Officer (FAC)</h3> The court allowed the writ petitions, quashed the impugned orders, and directed the assessing authority to conduct fresh proceedings ensuring the presence ... Validity of assessment order - TNGST Act - Section 54 of the TNGST Act - opportunity to cross-examine - Held that: - reliance placed in the case of M/s. Rajaganapathi Traders Versus The Commercial Tax Officer (FAC) [2017 (10) TMI 1164 - MADRAS HIGH COURT], where it was held that without affording an opportunity of cross examination of the other end dealer, there was no scope for the respondent to rely on the material relating to the said dealer for determination of the said liability on the petitioner - petition allowed. Issues:Challenging assessment order under TNGST Act for assessment years 1993-94 & 1994-95, compliance with court directions in earlier writ petitions, failure to offer cross-examination opportunity, powers under Section 54 of TNGST Act, reliance on materials from absent dealer, quashing of impugned orders.Analysis:The petitioner challenged the assessment order under the Tamil Nadu General Sales Tax Act for the assessment years 1993-94 & 1994-95. The court focused on whether the impugned orders complied with the directions issued in earlier writ petitions. The court emphasized the importance of affording an opportunity for cross-examination to the petitioner, particularly in cases where the assessing authority failed to summon and examine the concerned dealer. The court highlighted the significance of Section 54 of the TNGST Act, which grants the assessing authority powers similar to those of a court for summoning individuals and compelling document production. The court noted that the assessing authority must fully utilize these powers to ensure a fair assessment process, especially when dealing with absent dealers crucial to the case.The court pointed out that the assessing authority's reluctance to exercise all powers under Section 54 hindered a thorough examination of the case. Without the presence of the concerned dealer for cross-examination, the court deemed it improper for the assessing authority to rely on materials related to that dealer to determine the petitioner's tax liability. The court emphasized the necessity of following due process and conducting assessments in a manner that upholds the principles of natural justice.In light of the above considerations, the court directed the assessing authority to set aside the impugned orders and conduct proceedings afresh, ensuring the presence of the dealer for cross-examination. The court stressed that without offering the other end dealer for cross-examination, materials collected from that dealer cannot be used to determine the petitioner's tax liability. The court reiterated that compliance with court directions and the principles of fair assessment procedures are paramount in such cases.Consequently, the court allowed the writ petitions, quashed the impugned orders, and closed the connected miscellaneous petitions. The judgment underscored the importance of procedural fairness, adherence to court directives, and the proper exercise of statutory powers by the assessing authority in tax assessment matters under the TNGST Act.
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