2016 (1) TMI 185

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....39;) assessing the turnover of the petitioner for the assessment year 2013- 2014. The challenge in the writ petition is premised primarily on the contention that Ext.P6 order was passed without hearing the petitioner. It is the contention of the petitioner, therefore, that there has been a non-compliance with the rules of natural justice, and hence, Ext.P6 order is vitiated to that extent. 2. I have heard the learned counsel for the petitioner and the learned Government Pleader for the respondents. 3. On a consideration of the facts and circumstances of the case and the submissions made across the bar, I find that in Ext.P6 order, the 1st respondent observes that although a proposal under Section 25 (1) of the KVAT Act was issued and ....

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....r section 23 or section 24 deems it necessary to verify the books of accounts of the assessee, such authority may serve on the dealer a notice in Form No.17 calling upon him to produce the books of accounts or other records or evidences, if any, to prove his turnover and tax liability, and also the correctness of the stock statement, goods or the turnover reported or the input tax credit or the refund claimed, at a time and place to be specified in the notice and shall scrutinize them, if produced, as specified in the notice. (2) Where the dealer proves the correctness of the above claims with reference to the records produced, the assessing authority shall not proceed to complete best judment assessment. (3) Where the dealer fails to....

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....ssee in response to the notice or in the event of the assessee not producing any records, the assessing authority is expected to take a decision as regards whether or not to proceed with the best judgment assessment in relation to the assessee. It is thereafter that, he is to issue the notice intimating the assessee of the proposal to complete the assessment on best judgment basis in terms of Section 25(1) of the KVAT Act. It follows on a perusal of the aforesaid provision that the notice in Form 17 calling for records and the notice contemplated under Section 25(1) cannot both be on the same date since the notice under Section 25(1) must necessarily follow the decision arrived at by the assessing authority to proceed further to complete th....