TaxTMI 
TaxTMI 
2009 (7) TMI 1194
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.... Assistant Commissioner on verification of facts allowed the appeal in full by its order dated March 8, 1999. Aggrieved by the order of the first appellate authority, the Deputy Commissioner of Salem has preferred the State appeal before the Tribunal. Before the Tribunal, the Revenue mainly placed reliance on the inspection made by Enforcement Wing Officer in the assessee's place of business on August 23, 1993 and the Revenue also relied on the fact that the dealers being a manufacturer had not maintained and produced manufacturingcum-stock account in form XXX before the officers. The Revenue has also pleaded that on comparing the actual stock with book stock it was found that there was an excess stock of 31.5 gms and a deficit stock of 253 gms in certain items of silver articles and the Revenue has also found that there was no stock of silver anklets or the waist cord as on the date of inspection. The assessee had claimed exemption towards the sale of silver anklets at Rs. 12,25,023 and to verify the genuineness, the assessee was summoned to produce the accounts on three occasions. The accounts were produced subsequently, but not before the Enforcement Wing Officers. ....
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....tant Commissioner, Salem and the Sales Tax Appellate Tribunal, Coimbatore. The main contention raised by the Department was that at the time of inspection by the enforcement wing, two discrepancies were noted, viz., (i) There was no stock available either of silver anklets or waist cord; and (ii) In the purchase note maintained by the assessee, though mention was made regarding the silver anklets as well as the waist cord, no stock was available on that particular date of inspection and above all these things, in the sale bill, which was given by the assessee, the names of the purchasers have not been mentioned, only the weight and price of the article had been mentioned. The Department would contend that inspite of the notices issued to the persons mentioned in the purchase book, out of fourteen persons, only nine persons had been duly served and five persons had not been served and even the nine persons on whom the notices were served did not respond back and the other five persons since not served only a decision could be taken that the entire bought note purchases was a bogus transaction to utilize for the purpose of seeking exemption. It was contended by the Department that....
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....ng of the Tribunal is as follows: "'. . . The assessee had asked for cross-examination and they have come forward to produce the sellers but the assessing authority had declined such an offer stating that he cannot conduct a court of law. This denial of the assessee's right to cross-examination is by itself sufficient to make the assessment bad in law and liable to be struck down' according to the order of the Appellate Assistant Commissioner in paragraph 35. The assessment is not based on findings of truth but only on inferences and assumptions. 'The assessing authority in the case is established to have been guided merely by the proposals received from the enforcement wing than by his judicial mind . . .'." Both the Appellate Assistant Commissioner and the Tribunal has rightly concluded that in establishing the falsehood, an opportunity should have been given to the assessee and the refusal by the Department to give an opportunity of such cross-examination demanded by the assessee, vitiates the order of assessment. When the assessee has clearly produced the sale bills, which he is expected to maintain under law, the Department cannot go behind that an....
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....of every particular aspect, has got every legal authority to get in evidence, evaluate the same and apply the law and ultimately, come to a conclusion. In this aspect, he can ask for evidences to be examined and allowing them to be crossexamined. In this connection, it is worthwhile to mention that the very Act itself has given wide powers and treated the authority to look into matters as that of a court. The quasi-judicial functions are granted to the competent authorities with all the powers granted to a court also. As held by the Supreme Court, it has got all ingredients of trappings of the court. The various section and rules as found in the Act itself would prove beyond any reasonable doubt that the functions of the authority should be that of a quasi-judicial authority more akin to a court. A reading of sections 54, 54A, 55 of the Tamil Nadu General Sales Tax Act, 1959, is relevant for consideration. "54. Power to summon witnesses and production of documents.- (1) An assessing authority or an appellate or revising authority (including the Appellate Tribunal) or any officer of the Commercial Taxes Department not lower in rank than an Assistant Commercial Tax....
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....5, 7A, 7C, 7D or 7E according to the best of his judgement: Provided that before making assessment under this rule, the assessing authority shall obtain the concurrence of the Deputy Commissioner having jurisdiction if the assessment results in imposition of tax of one lakh rupees and above or enhancement of tax due to the extent of one lakh of rupees over and above the tax due as reported in the returns. . . . 18(6) After the close of the year in which the tax due is provisionally determined in accordance with sub-rule (3) or sub-rule (4) or in the course of the year to which a return submitted under sub-rule (5) relates, unless the dealer is eligible for self-assessment specified in the proviso to clause (a) of sub-section (1) of section 12 or the rules relating thereto, the assessing authority shall, subject to the provisions of sub-rule (5A) of rule 15 after such scrutiny of the accounts, registers, records and other documents and after such enquiry as he considers necessary, satisfy himself that the returns filed are correct and complete, and finally assess under a single order on the basis of the returns, the tax or taxes payable under any of the sections 3, 3A, 3B, ....
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....y the authority to ultimately to come to a correct conclusion that the assessment is in fact valid under law. Such wide power has been granted by the Legislature, so that such finding of fact by the first authority or latter, thus accepted or reviewed by the appellate authorities, who are also empowered to seek such further information so that, ultimately the facts are established beyond any reasonable doubt. When such is the intention of the Legislature in granting these powers even to the assessing authority, the assessing authority should exercise that power with utmost confidence with all the trappings of the court and decide the matter in the manner known to law. It is not correct to say or simply brush aside that such evidences, cross-examinations, production of documents or summoning the witnesses at the threshold, which can avoid all these multiplicity of proceedings, if such a simple exercise has been completed by the assessing authority himself without saying that the authority cannot act like a court. Therefore, the Legislature had given all these powers to all the fact-finding authorities that at least the assessee and the Revenue should be confident that every mater....