KUMAR ENTERPRISE Vs. STATE OF ASSAM

JUDGEMENT

(1.) Heard Ms. N. Hawelia, the learned Counsel appearing for the petitioner. The Revenue is represented by the learned Counsel Mr. B. Choudhury.

(2.) The petitioner is a proprietorship firm in the business of, inter alia, sale of Jute, Supari etc. The firm is registered as a dealer under the Assam Value Added Tax Act, 2003 (hereinafter referred to as "the VAT Act") and the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act"). The present case relates to the assessment year 2005 - 2006 when the dealer affected inter-state sales of Jute under the CST Act. The turnover return of the dealer was examined under Section 9(2) of the CST Act read with Section 34 of the VAT Act and having found the declared price of jute at Rs. 4.55 a kg. to be on the lower side, the Assessing Authority assessed the jute price at Rs. 5.10 a k.g. and on that basis, the tax was determined. The dealer accepted the assessment and paid the tax on the turnover stipulated by the Assessing Authority as assessed on 30.4.2007 (Annexure-I).

(3.) However the Deputy Commissioner of Taxes, Dhubri as the Revisional Authority issued show cause notice on 2.8.2007 for suo-motu Revision of the assessment order under Section 82 of the VAT Act by referring to the turnover declared by the dealer at Buxirhat Check-Gate of West Bengal while dispatching the goods in course of inter-state trade. But the first show cause notice of 2.8.2007 was cancelled and substituted by a 2nd notice, dated 28.11.2007 (Annexure-III). The Deputy Commissioner of Taxes in the 2nd notice referred to the declared turnover at the Assam Check-gate to the tune of Rs. 3,21,70,791/- and accordingly asked the dealer to show-cause as to why the suo-motu Revision of Assessment should not be made, in respect of the earlier assessment order dated 30.4.2007. Opportunity of only 7 days' time was granted for appearance of the Assessee and they could not appear and subsequently, the impugned order was passed on 29.2.2008 (Page-32) cancelling the original Assessment and direction was issued for fresh assessment on higher turnover of Rs. 3,21,70,791/, for the Assessment Year 2005 - 2006. Then assessment order cum demand notice dated 17.2008 for Rs. 17,43,272/-, towards tax and interest was served on the dealer.