Assessment notice sent to recorded address and remand for fresh hearing after disputed stock transfer treatment under sales tax law.

The assessment under the Central Sales Tax Act was challenged on the ground that the show-cause notice was sent to an old address, preventing a reply and effective hearing. The Court noted that Form VAT 112 had not been filed, so the Assessing Officer was justified in using the address available in the records. It also noted that the turnover claimed as exempt under the Telangana Value Added Tax Act was treated as stock transfer and taxed under the Central Sales Tax Act. In the interest of fairness, the assessment was set aside and the matter was remanded for fresh consideration after the petitioner's reply and personal hearing.

---

---

Issues: Whether the assessment order under the Central Sales Tax Act, 1956 was liable to be set aside and the matter remanded for fresh consideration on account of the notice having been sent to the previous address and the petitioner not having been afforded an effective opportunity of reply and hearing.

Analysis: The petitioner complained that the show cause notice was sent to the old address and that a reply could not be filed. The Court noted that Form VAT 112 had not been filed and, therefore, the Assessing Officer was justified in using the address available in the records. At the same time, the Court found that the turnover claimed as exempt under the Telangana Value Added Tax Act, 2005 had been treated as stock transfer and taxed under the Central Sales Tax Act, 1956. In the interest of fairness, and since the respondents were not at fault, the Court granted one further opportunity to the petitioner after directing deposit of Rs. 3,00,000/-, which had been complied with.

Conclusion: The assessment order was set aside and the matter was remanded to the Assessing Officer for consideration afresh after receipt of the petitioner's reply and grant of personal hearing.

---