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of <h1>Court Orders Fresh Show Cause Notice, Emphasizes Fair Procedures for Mismatch Cases</h1> <h3>M/s. Alayam Traders Versus The Commercial Tax Officer</h3> M/s. Alayam Traders Versus The Commercial Tax Officer - TMI Issues:Challenge to Notice for differential tax amount, Procedure for handling mismatch cases, Legality of impugned order.Analysis:1. Challenge to Notice for Differential Tax Amount: The Writ Petition challenges a notice issued by the Respondent regarding verification of sales transactions in 2009-2010 and claiming payment of differential tax with interest and penalty. The Petitioner's Counsel referred to a previous judgment by the Court in a similar matter, emphasizing the need for a centralized mechanism to handle discrepancies before issuing show cause notices to dealers. The Court highlighted the importance of a fair procedure and opportunity for dealers to explain their position before any adverse actions are taken.2. Procedure for Handling Mismatch Cases: The Court referred to a previous ruling directing the authorities to evolve a centralized mechanism to deal with cases of mismatch in sales transactions. Following this directive, the Commissioner of Sales Tax issued detailed instructions for authorities to follow in cases involving mismatch of Input Tax Credit (ITC) and other issues. The circular outlined procedures for assessing authorities to finalize assessments, seek approvals, maintain lists of cases, and ensure timely resolution of pending proposals.3. Legality of Impugned Order: Considering the legal position established by previous judgments and directives, the Court set aside the impugned order as it did not align with the prescribed procedures. The assessing officer was directed to issue a fresh show cause notice with all necessary details, allowing the Petitioner to submit explanations without invoking any plea of limitation. The Court emphasized the importance of following due process, affording opportunities for hearings, passing reasoned orders, and communicating decisions in writing to ensure procedural fairness and compliance with the law.In conclusion, the Writ Petition was disposed of based on the terms outlined in the judgment, emphasizing adherence to fair procedures and centralized mechanisms for handling mismatch cases to protect the interests of dealers and ensure revenue compliance.
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