EASTERB AGENCY Vs. STATE OF ASSAM

JUDGEMENT

(1.) Writ Petitions (C) No. 7044, 7045, 7046and 7047 of 2005 were heard on 5.10.2005 for final disposal as all these cases raise identical question of law.

(2.) Shri H. Roy, learned senior counselassisted by Mr. R. Goenka, Mr. R.K. Agarwalla, Mr. N. Barua and Mr. M.Talukdar, learned counsels appeared on behalf of the petitioners, while Mr. K.N.Choudhury, learned Additional Advocate General, Assam appeared for the State.

(3.) The petitioners are propritorship co duly registered as dealers under the Assam General Sales Tax Act, 1956.They are members of the Guwahati Tea Auction Centre and engaged in the business of purchase and sale of tea in course of inter-state trade and commerce. The disputes relate to the turnovers for the year 2001-2002. The turnovers disclosed total sale of tea to the tune of Rs. 8,33,26,100/- (in W.P.(C) No. 7044 of 2005); Rs.6,78,31,000/- (in W.P.(C) No. 7045 of 1999); Rs. 9,05,25,900/- (in W.P.(C) No. 7046 of 2005); and Rs. 7,72,86,400/- (inW.P.(C) No. 7047 of 2005). The petitioners having sold the tea to the registered dealer of other States are not required to pay taxes under Section 8(5) of the Central Sales Tax Act, 1956. The returns for the period 2001-2002 were filed by the petitioners without the C-Forms (declaration) as required under law. The taxing authority, namely, the superintendent of Taxes, Unit-B, Guwahati, issued notices on21.2.2004 to the petitioners to show cause as to why summary assessment as per provisions of the Act would not be made on their failure to produce the books of accounts. In reply, the petitioners informed that they would produce the books of accounts as soon as they receive the same from the registered dealers and requested for time. The next hearing was fixed on 22.6.2004. The petitioners tried to collectthe "C" Forms from the puchasers but having failed to procure the same on the sameday i.e. 22.6.2004 informed the Superintendent of Taxes in writing that they wouldproduce the books of accounts as soon asthe "C" Forms are received from the purchasers. The petitioners were expectingthat their prayer would be granted and sufficient time would be allowed to producethe books of accounts. But, the Superintendent of Taxes instead of informing anything inreply, served notices of demand dated 31.3.2005 levying a tax of Rs. 1,51,65,350/-(in W.P. (C) No. 7044/2005); Rs. 1,23,45,242/- In W.P.(C) No. 7045/ 2005); Rs. 1,64,75,714/- (in W.P.(C) No. 7046 of 2005), and Rs. 1,40,66,125/- (in W.P.(C) No. 7047 of 2005) respectively including interest. The petitioners received the said notices on 26.8.2005. The taxing authority assessed the tax payable sum- marily to the best of his judgment on the basis of the report of the Area Inspector of Taxes without any opportunity of hearing to the petitioners. The copy of the report was also not furnished. Aggrieved, the petitioners have approached this Court for setting aside the aforesaid notices of demand with prayer for stay etc.