Court quashes assessment revision order for lack of cross-examination, emphasizes assessing officer's duty

The Court quashed the respondent's order in a case challenging the revision of assessment and cross-examination of a 3rd party. The Court emphasized the duty of the assessing officer to make the other end dealer available for cross-examination and highlighted the respondent's failure to ensure the seller's presence for cross-examination. The Court set aside the order, remanding the matter for fresh orders in compliance with the law, directing the respondent to follow the statutory procedures to enable cross-examination. The writ petition was allowed without costs, and the connected Miscellaneous Petition was closed.

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Issues:
Challenge to order passed by respondent in TIN No.33434120415/2014-2015 for revising assessment and cross-examination of 3rd party.

Analysis:
The petitioner filed a writ petition challenging the order passed by the respondent, seeking to quash the order and direct the respondent to provide necessary documents and allow cross-examination of the 3rd party, Tvl.VSSM Distributors. The petitioner argued that despite a previous judgment in their favor for a similar issue, the respondent failed to discuss the required documents and offer cross-examination of the seller. The petitioner emphasized the seller's non-appearance for cross-examination as directed by the respondent, leading to a request for quashing the impugned order.

The Government Advocate representing the respondent contended that the petitioner had the opportunity to cross-examine the seller but admitted the seller's non-appearance for cross-examination. The respondent, as per Section 81 of the TN VAT Act, holds the power to summon witnesses following the procedures outlined in the Code of Civil Procedure. The respondent's failure to exercise this statutory power by not ensuring the seller's presence for cross-examination was highlighted.

Referring to a previous judgment, the Court emphasized the duty of the assessing officer to make the other end dealer available for cross-examination when revising an assessment based on the dealer's returns. Section 81 of the TNVAT Act confers powers and duties on the assessing officer to summon individuals, examine them, and compel document production. The Court noted the respondent's failure to adhere to the parameters set by the Madras High Court in a prior decision, leading to the quashing of the impugned order and remitting the matter back to the respondent for fresh orders in compliance with the law.

The Court acknowledged the absence of the seller and the petitioner's inaction in summoning the seller under Section 81 of the TNVAT Act. Consequently, the Court set aside the respondent's order and remanded the matter for fresh orders, directing the respondent to follow the Act's procedures to enable the petitioner to cross-examine the seller. The writ petition was allowed without costs, and the connected Miscellaneous Petition was closed.

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