Non-speaking reassessment order on input tax credit set aside for ignoring reply and material; matter remanded for fresh adjudication.

A quasi-judicial reassessment order denying input tax credit was vulnerable in writ jurisdiction because the authority did not consider the assessee's reply and supporting documents, gave no reasons, and failed to examine the transaction structure and related registration details. The existence of an alternative appellate remedy did not bar interference where the decision-making process showed non-application of mind and procedural unfairness. The reassessment order and connected demand were set aside, and the matter was remanded for fresh adjudication after hearing the assessee and passing a speaking order.

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Issues: Whether the reassessment order denying input tax credit and the connected demand could be interfered with in writ jurisdiction for non-consideration of the assessee's reply and supporting documents, absence of reasons, and failure to examine the nature of the transaction before remanding the matter for fresh consideration.

Analysis: The reassessment was based on the view that the purchase invoices did not stand in the name of the assessee. The record, however, showed that the invoices, transaction structure, lease arrangements, payment of output tax by the selling dealer, and the registration details required closer examination. The authority did not address the assessee's reply or the material produced, and the rectification application was dealt with in the same manner. In such a fact situation, the decision-making process was found to be vulnerable for want of reasons and for non-consideration of relevant material. The existence of an alternative appellate remedy did not bar interference where the order disclosed procedural unfairness and failure to apply mind to the controversy.

Conclusion: The reassessment order and demand were set aside and the matter was remanded to the prescribed authority for fresh adjudication after hearing the assessee and passing a speaking order. The writ petition succeeded.

Ratio Decidendi: A quasi-judicial tax order that ignores the assessee's reply and material documents and is passed without reasons may be interfered with in writ jurisdiction notwithstanding alternative remedy, and the proper course is remand for fresh, reasoned consideration.

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