Consideration of relevant evidence in works-contract deductions requires the Tribunal to examine records or permit their production.

A Tribunal acting as the final fact-finding authority must examine records relevant to an inter-State purchase deduction claimed for goods used in works contracts, or allow the dealer to produce them. The text states that the underlying orders did not address the contract terms or foundational material showing whether the contracts occasioned movement of goods from outside the State. Rejecting the claim without verifying records asserted to have been filed denied consideration of relevant evidence and an opportunity to substantiate the claim. The Tribunal's order was set aside for fresh consideration of the evidence and, if needed, additional material.

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Issues: Whether the Tribunal, as the final fact-finding authority, could reject the dealer's claim for deduction on inter-State purchases used in works contracts without examining the records asserted to have been filed before the lower authorities or affording an opportunity to produce them.

Analysis: The orders of the assessing authority, first appellate authority and Tribunal contained no discussion of the works-contract terms or the foundational documents bearing on whether movement of the goods from outside the State was occasioned by the contracts. Despite the dealer's specific assertion that supporting material had been produced before the assessing authority, the Tribunal rejected the claim without verifying the records. As final fact-finding authority, the Tribunal was required either to summon and examine the available records or permit the dealer to produce the material.

Conclusion: The questions concerning non-consideration of evidence and denial of opportunity were answered in favour of the assessee; the Tribunal's order was set aside for fresh consideration of the evidence and, if necessary, further material.

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