Show-cause notice limits fiscal levies; format-based rejection of taxpayer records requires fresh assessment with meaningful hearing.

A fiscal assessment cannot impose tax on packing material unless the show-cause notice proposes that levy; the levy was therefore invalid. Purchase and sales particulars cannot be rejected solely because they are not in the format requested by the assessing authority when no further information is sought. Such non-consideration denies the assessee a meaningful opportunity to substantiate its claim and violates principles of natural justice. The assessment required redetermination after fresh notice and a proper hearing.

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Issues: (i) Whether tax could be levied on packing material without a proposal in the show-cause notice; (ii) Whether rejection of the purchase and sales particulars merely because they were not furnished in the format sought by the assessing authority violated principles of natural justice.

Issue (i): Whether tax could be levied on packing material without a proposal in the show-cause notice.

Analysis: The assessment included tax on packing material although the show-cause notice contained no proposal for such levy; this omission was also accepted by the Revenue.

Conclusion: Levy of tax on packing material without prior notice was invalid, in favour of the assessee.

Issue (ii): Whether rejection of the purchase and sales particulars merely because they were not furnished in the format sought by the assessing authority violated principles of natural justice.

Analysis: The assessing authority declined to consider the particulars submitted solely because they were not in the requested format, without calling for further information. Non-consideration of the material in those circumstances denied a proper opportunity to substantiate the claim.

Conclusion: The assessment suffered from violation of principles of natural justice, in favour of the assessee.

Final Conclusion: The assessment was required to be redetermined after fresh notice and a meaningful opportunity of hearing.

Ratio Decidendi: A fiscal assessment cannot impose a levy not proposed in the show-cause notice, and material furnished by the assessee cannot be disregarded on a mere format objection without seeking necessary further particulars.

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