The right to cross-examine in tax proceedings is context-dependent, and denial does not constitute a breach of natural justice if sufficient opportunity to contest the findings is provided.

JUDGMENT :

RAVI NATH TILHARI, J.

1. Heard Sri S. Dwarakanath, learned senior counsel, assisted by Sri P. Karthik Ramana, learned counsel for the petitioner and Sri T.C.D. Sekhar, learned Government Pleader for Commercial Taxes, appearing for the respondent.

Facts of the Case:

2. This Tax Revision Case under Section 22 (1) of Andhra Pradesh General Sales Tax Act has been filed by the petitioner-M/s. Foods, Fats and Fertilizers Limited, Tadepalligudem, challenging the Order dated 31.12.2001, passed by the Sales Tax Appellate Tribunal (in short ‘Appellate Tribunal’) Andhra Pradesh Hyderabad in T.A. No. 192 of 1997.

3. The petitioner-M/s. Foods, Fats and Fertilizers Limited is a registered company on the rolls of the Commercial Tax Officer, Tadepalligudem and dealer in vegetable oil, deoiled cake etc. During the year 1991-92 the petitioner sent consignment of vegetable oils to outside the State and sales through nonresident agents. The assessing authority- Commercial Tax Officer (CTO) vide proceedings in GI No. 539/91-92 (CST), dated 29.02.1996 granted an exemption on a turnover of Rs.1,64,15,660/-. The Deputy Commissioner (Commercial Tax), in his revised Order dated 18.03.1997 has brought a turnover of Rs.1,52,12,755/- to tax as inter-state sales. The assessee/petitioner filed Tribunal Appeal No. 192 of 1997, which has been dismissed by the Appellate Tribunal by Order dated 31.12.2001.

4. The Deputy Commissioner (CT) in its Order has clearly observed that the Commercial Tax Officer examined the books of accounts of the dealers and a show cause notice dated 19.01.1993 was issued allowing exemption on the turnover of Rs.1,66,70,771/- in addition to other exemption relying on sale patties and F-forms filed by the dealer. The Commercial Tax Officer subsequently issued another show cause notice dated 03.07.1993 proposing withdrawal of exemptions on turnover of Rs.1,52,06,954/- In view of the verification of transactions and enquiries conducted by the Commercial Tax Officer, Tadepalligudem with the assistance of the Sales Tax officials at Bombay, which revealed that 5 agents were non-existent fictitious and the F-forms issued by those agents to the petitioner-dealer were not issued by the Sales Tax officials at Bombay and were not certified F-forms by the concerned Sales Tax officials at Bombay and consequently, the sale patties and other relevant records filed by the petitioner-dealer in support of the consignment sale could not be accepted as correct and valid. The enquiries also revealed that the agents had not paid any sales tax in their State to the concerned Sales Tax officials on the sale effected in respect of book transactions.

5. The assessee had filed objections. Subsequently further enquiries were made at Bombay in January 1997 by the Assistant Commercial Tax Officer of the Intelligence Wing with the help of Bombay Sales Tax authorities with regard to the returns filed and the assessment made on the agents, which revealed that the agents were doing business in goods other than those claimed by the assessee and some of the agents were not available at the addresses given. Even F-forms were not supplied by Commercial Tax Department of Maharashtra State. The order of the Deputy Commissioner mentions that these facts were disclosed to the assessee in the show cause notice and the assessee company was also given an opportunity to go through the enquiry reports. Based on the further enquiries and information collected in the month of January