Court sets aside assessment orders, remands for fresh consideration, citing failure to consider objections and improper reliance on Enforcement Wing.

The court allowed the writ petitions, setting aside the assessment orders and remanding the matters for fresh consideration. The court directed a reevaluation of the assessment, excluding influence from the Enforcement Wing's report. The decision was based on failure to consider objections, improper reliance on Enforcement Wing directives, and disregard of binding circulars in the assessment process.

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Issues:
Assessment based on inspection findings, rejection of objections by petitioner, consideration of admission before Inspecting Authorities, applicability of circulars and instructions in assessment proceedings.

Analysis:
The petitioner, a dealer in consumer products, challenged assessment orders issued by the respondent following an inspection by Enforcement Wing officials. The respondent proposed to revise assessments for multiple years and levy penalties based on the inspection findings. The petitioner raised objections citing circulars and court decisions, but the respondent rejected these objections and completed the assessment. The petitioner argued that the respondent did not consider their objections and merely relied on defects noted during inspection. The respondent contended that the petitioner's admission before Inspecting Authorities was binding and that the objections should have been raised through appeals rather than writ petitions.

The court analyzed the assessment orders and observed that while detailed, they primarily focused on the defects noted during inspection and the petitioner's alleged admission before the Enforcement Wing officials. The court then delved into the legal principles regarding the admissibility of statements made before different authorities in the context of tax assessments. It distinguished a previous case where a retracted statement was considered, emphasizing the quasi-judicial nature of Assessing Officers. The court concluded that the Assessing Officer in this case acted on directions from higher authorities, which is impermissible, citing a relevant court decision.

Furthermore, the court highlighted the importance of circulars issued by the Commissioner of Commercial Taxes, particularly one related to the treatment of discounts and incentives in sales turnover calculations. The petitioner contended that the assessment was incorrect based on their records, and the court agreed that the circular should have been considered by the Assessing Officer. Referring to another court decision, the court emphasized the binding nature of favorable clarifications and orders issued by the Commissioner on subordinates.

In the final judgment, the court allowed the writ petitions, set aside the impugned orders, and remanded the matters to the respondent for fresh consideration. The court directed a reevaluation of the assessment in accordance with the law, excluding any influence from the Enforcement Wing's report. The court's decision was based on the failure to consider objections, improper reliance on Enforcement Wing directives, and the disregard of binding circulars in the assessment process.

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