STOCK TRANSFERS UNDER THE CST ACT.

[Sadanand Bulbule]

Sir

The assessing authority while concluding the reassessment under Section 6A of the CST Act,1956,based on the Enforcement Report, has determined the stock transfer as interstate sales under Section 3A of the Act, without establishing conceivable links between the alleged transactions in terms of the Hon'ble Apex Court constitutional bench judgement rendered inTELCO case reprted in 1970 AIR 1281 = 1970 (3) TMI 104 - SUPREME COURT.

Now the question is, in the event of the dealer getting the copies of the adverse materials so used as the only basis for reopening the concluded assessment,whether the dealer is entitled to cross-examine the impugned statements recorded during investigation and other related documents to prove the genuineness of his stock transfers? What is the procedure of cross-examination? What are its implications?Please enlighten by providing the recent and relevant judicial rulings on these issues.

AI Summary

Query on Reassessment of Stock Transfers Under CST Act, 1956; Evidence and Cross-Examination Procedures Discussed An individual raised a query regarding the reassessment of stock transfers under the CST Act, 1956, where the assessing authority classified the transfers as interstate sales without sufficient evidence, referencing a Supreme Court judgment. The individual sought advice on whether they could obtain and cross-examine the evidence used against them, and the procedure for doing so. Responses included a request for expert clarification and a suggestion that only pre-conceived sales could be treated as CST sales under form F, urging clarification of the facts. The discussion aimed to share knowledge on the issue.