The assessing authority must disclose reasons for initiating proceedings in the show cause notice, and the accusation of pre-conceived notions is a matter of inference based on the facts of each case.

RAJU, J.

The above appeal has been filed against the order of the learned single, Judge, dated March 9, 1994 made in W.P. No. 4004 of 1994 whereunder the learned single Judge dismissed the writ petition even at the stage of admission rejecting the challenge mafde by the appellant to the show cause notice, dated December 20, 1993 issued under section 16(1) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act").

2. In the impugned notice dated December 20, 1993, the respondent has referred to in great detail the nature of the business of the appellant, the inspections conducted, the earlier final assessment made for the assessment year 1992-93 on August 24, 1993 and the proposal to revise the assessment order for the year 1992-93, utilising the contents of the inspection report, as in his view the result of the inspection should necessarily be considered. Thereupon, the various details relating to the contents of the report received have been disclosed in the notice and while prima facie coming to the conclusion that the dealers have wilfully suppressed the purchase turnover of the groundnut kernel and the sale of the resultant oil and their returns did not disclose the correct turnover, the respondent has called upon the appellant-assessee to file his objections, if any, to the proposals contained in the impugned notice along with necessary documentary evidence. It was also stated therein that an opportunity of being heard in person would also be given. No doubt in the notice after referring to some of the contents of the inspection report, it is stated that all the facts disclosed in the notice have strengthened the suspicion on the bona fides of the transaction of the dealer. It is this observation in the notice that is taken advantage of to challenge before the learned single Judge and also before us, on the ground that the respondent has pre-conceived, pre-judged and fore-closed mind, as revealed in the show cause notice and that therefore, the impugned notice is liable to be quashed.

3. Before the learned single Judge, on behalf of the appellant, a decision of a Division Bench of the Gujarat High Court in Ashwin Industries v. Deputy commissioner of Sales Tax, Baroda has been relied upon. After considering the ratio of the said decision as also the scheme underlying the provision of section16 of the Act, the learned Judge has expressed a view that the revision of assessment can be made under the Act for "any reason" and satisfaction to revise the assessment is up to the assessing authority and it cannot be said that this Court can substitute its view at that stage. The learned Judge also repelled the only contention raised before him that the entire proposal to revise the assessment for the year in question is based on mere presumptions and conjectures, without any clinching evidence, and therefore, the impugned notice was bad in law. Before us, at the time of hearing, taking a different and rather even a contradictory stand the counsel for the appellant placed reliance upon a ruling in Madurai Metal Industries v. Union of India 1991 WLR 59. The learned counsel invited our attention to the notice and the contentions urged before the Division Bench of this Court as found disclosed in paragraph 3 and the conclusions in paragraph 9 to contend that the impugned notice in this case before us as in the case decided by the Division Bench in the judgment referred to above cannot be allowed to stand since the show cause notice disclosed that the officer who issued the same had already pre-conceived notions about the default made on the part of the appellant. We have carefully gone through the judgment of the Division Bench and the notice issued in the case on hand.

4. Under section16 of the Act, where, for any reason, the whole or any part of the turnover of business of a dealer has escaped assessment to tax, the assessing authority may, subject to the provisions of sub-section (2) at any time w