Learned counsel for the petitioner contends that an amount of Rs.3,789,778 has been demanded from the petitioner on the basis of an audit report. The petitioner, however, has not been furnished a copy of the audit report nor has any opportunity been granted to the petitioner to point out flaws in such report and to show cause why the amount demanded might not be payable by the petitioner.
2. Learned counsel for the petitioner contends that even though the petitioner has deposited an amount of Rs.1,500,000 with the respondent- #TBS .71 #TBE Department on 12-6-2001 this was done under protest and on the express conditions that the audit report, which forms the basis of the demand against the petitioner, will be supplied to the petitioner. Admittedly, this has not been done despite the lapse of almost one month from the date on which the deposit of, the aforesaid sum was made with the Sales Tax Department by the petitioner.
3. Learned counsel for the petitioner further contends that the audit report itself cannot constitute a determination of the petitioner's liability for payment of sales tax. According to him the petitioner has to be afforded a reasonable and adequate opportunity of going through the audit report and to point out flaws, if any, in such report with the object of rebutting the basis or authenticity of such report.
4. The aforesaid contentions of learned counsel have obvious merit. The petitioner cannot be burdened with liability merely on the basis of an audit report with which the petitioner has not been confronted. In these circumstances, the present petition is allowed.
5. This order, however, shall not prevent the Sales Tax Department from preparing a contravention case in accordance with law on the basis of the audit report and other material, if any. The matter should thereafter be adjudicated in accordance with the provisions of the Sales Tax Act after a show-cause notice has been issued 'to the petitioner and the petitioner has been afforded a reasonable and adequate opportunity of responding such show-cause notice. This ,petition is disposed of in the above terms. .