1997 (4) TMI 469

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.... Tax Act, 1973 (for short, "the Act"). The Assessing Authority, before whom the petitioner filed its returns for the year 1989-90, issued notice in form ST-25 and held enquiry into the various facets of the business of the assessee. It also secured some information from the Executive Engineer, Delhi Development Authority. After hearing the petitioner, the Assessing Authority held that the assessee was liable to pay Rs. 11 and Rs. 7,87,522 under the Act of 1973 and the Central Sales Tax Act, 1956, respectively. The Joint Excise and Taxation Commissioner (Appeals), Ambala and the Sales Tax Tribunal-II, Haryana, expressed their concurrence with the findings and the conclusions recorded by the Assessing Authority and dismissed the appeals fi....

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....goods have been manufactured outside the State of Haryana and were supplied to the Delhi Development Authority from outside the State of Haryana has been completely ignored by the Assessing Authority, the Appellate Authority and the Tribunal and on this count alone the impugned orders should be nullified with a direction to the Assessing Authority to give reasonable opportunity of hearing to the petitioner. On the other hand, Shri Jaswant Singh argued that the information supplied by a public authority like the Delhi Development Authority could legitimately be taken into consideration by the Assessing Authority, particularly, when the copies of the documents were furnished to the petitioner. 5.. We have thoughtfully considered the rival ....

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.... information collected from the office of the Delhi Development Authority but also made them the basis for recording a finding adverse to the petitioner. In our opinion, the Assessing Authority has acted illegally by refusing to accept the request of the petitioner for summoning of the official of the Delhi Development Authority. This action of the Assessing Authority resulted in the violation of the principles of natural justice and, therefore, the order passed by the Assessing Authority is liable to be upset. 6.. In Kalra Glue Factory v. Sales Tax Tribunal [1987] 66 STC 292, their Lordships of the Supreme Court set aside the order of the Sales Tax Tribunal on the ground of violation of the principles of natural justice. The court held:....

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....son to produce evidence in support of the returns. After hearing the evidence which the dealer may produce and after considering such other evidence which the Assessing Authority may require on a specified point of time, the Assessing Authority has to assess the amount of tax due from the dealer. Under rule 26(1) of the Haryana General Sales Tax Rules, 1975, the dealer can be called upon to produce his books of account and other documents for examination by the Assessing Authority. The dealer can also produce evidence on which he may rely to support its case. The dealer is entitled to file written objections under rule 26(2). Clause (3) of rule 26 empowers the Assessing Authority to make such enquiries as it may deem fit and record a findin....