Reassessment without adequate evidence or opportunity constitutes a jurisdictional error under the Central Sales Tax Act.

1. CA No. 2438 of 2009 (Arising out of (SLP (C) No. 21040 of 2008)
Leave granted. Appellant - Indian Oil Corporation is inter alia engaged in the business of refining and selling of petroleum products including High Speed Diesel (HSD) and Superior Kerosene Oil (SKO). Appellant - corporation is a registered dealer in the State of Orissa for the purpose of Central Sales Tax Act, 1956 (for short, "CST Act").

2. Appellant - corporation sells HSD and SKO by despatching the said goods from various refineries like Jamnagar Refinery, Vizag Refinery and Chennai Refinery to Haldia Port, West Bengal. Since, Big Ocean Tankers cannot be sent to the Haldia Port, West Bengal, the entire load of SKO and HSD which are carried by the Big Ocean Tankers are unloaded in the appellant - corporation's Terminal at Paradeep Port, Orissa. Out of the said stock a certain portion of the goods is used for local sales inside the State of Orissa and sales tax under Orissa Sales Tax Act, 1947 is paid. The remaining portion is moved to Haldia Port in West Bengal by way of Small Tanker Vessels on "stock transfer" basis.

3. During the assessment year 2001-02 the appellant - corporation moved HSD and SKO from Paradeep Port, Orissa to Haldia Port, West Bengal in the total quantity of 2,69,846.277 KL of SKO and 4,40,150.791 KL of HSD respectively. The ownership and title of the goods remained with appellant - corporation as can be seen from the Bill of ladings. The appellant - corporation furnished a declaration in terms of Form - F declaring that the movement of the subject - goods stood occasioned by stock transfer and not by inter - State Sale.

4. The Assessing Authority vide its order dated 31.3.05 held that the appellant - corporation could not provide any evidence in support of Form - F and consequently the Assessing Authority recorded a finding of escapement of turnover from tax. Aggrieved by the decision of the Assessing Authority, the appellant - corporation preferred statutory appeal before the first appellate authority which dismissed its appeal vide order dated 15.2.06 on the ground that no relevant documentary evidence has been produced to prove that the goods stood despatched to outside the State on stock transfer basis.

5. Being aggrieved, the appellant - corporation preferred Second Appeal to the Tribunal. Similarly, the appellant - corporation approached the Commissioner for stay of the recovery which was granted vide its order dated 12.6.06. No sooner the Commissioner granted stay of the recovery, the Assessing Authority gave notice to the appellant - corporation on 29.12.06 seeking to reopen the assessment on the ground that a portion of the total turnover had escaped assessment. Vide order dated 19.2.07, the Assessing Authority passed re - assessment order rejecting the request for adjournment made by the representative of the appellant - corporation. The Assessing Authority held that the entire transaction in relation to the movement of goods from appellant - corporation's Terminal at Paradeep Port, Orissa to Haldia Port, West Bengal amounted to inter - State sale(s).

6. Suffice it to state that against the reopening of assessment, the appellant - corporation moved the High Court in Writ Petition (C) No. 3691 of 2007 seeking to challenge the reopening of assessment by the Assessing Authority raising additional tax demand of Rs.299,05,07,587/- including penalty of Rs.179,43,04,552/-. By the impugned judgment dated 16.5.08 the Division Bench of the Orissa High Court dismissed the said writ petition hence this civil appeal by way of petition for