1972 (10) TMI 104 - SC - VAT and Sales Tax

Whether, under the circumstances of this case, the assessment passed by the Assistant Sales Tax Officer, Sector 11, was a valid assessment or a void one without jurisdiction? Held that - Appeal dismissed. Unless there is some provision either in the Act or in the Rules framed which precludes the assessee from raising any objection as to jurisdiction, if the same is not raised before the assessing authority, the assessee cannot be precluded from raising that objection at a later stage. An objection as to jurisdiction goes to the root of the case.

Summary

Issues: Jurisdiction of Assistant Sales Tax Officer, Validity of Assessment

The judgment of the Supreme Court involved a case where the jurisdiction of an Assistant Sales Tax Officer to assess a dealer was in question. The appeal arose from a decision of the Allahabad High Court regarding the validity of an assessment made by the Assistant Sales Tax Officer, Sector II, under the U.P. Sales Tax Act. The primary issue was whether the Assistant Sales Tax Officer had the jurisdiction to assess the dealer or if the assessment was void due to lack of jurisdiction.

The Court analyzed the relevant provisions of the Act and Rules to determine the jurisdiction of the Assistant Sales Tax Officer. Section 2(a) defined the assessing authority, while Rule 2(h) defined the Sales Tax Officer and Assistant Sales Tax Officer. Rule 3(3) empowered the Commissioner to determine the jurisdiction of Sales Tax Officers in a circle, and Rule 6(a) specified that the Sales Tax Officer shall be the assessing authority for dealers within his jurisdiction. In this case, the demarcation of jurisdiction by the Commissioner meant that the Assistant Sales Tax Officer, Sector II, did not have the authority to assess the dealer in Sector III.

The Court rejected the department's argument that all Assistant Sales Tax Officers in the Lucknow Circle had jurisdiction to assess all dealers, emphasizing the importance of jurisdictional demarcation. It also dismissed the contention that the dealer was precluded from objecting to jurisdiction since such an objection goes to the root of the case. The Court distinguished a previous Full Bench decision where the assessing authority's jurisdiction included the locality of the dealer, which was not the case here.

Ultimately, the Court found no merit in the appeal and dismissed it, upholding the High Court's decision that the assessment by the Assistant Sales Tax Officer, Sector II, was void due to lack of jurisdiction. As the respondent was not represented, no costs were awarded in the case.

In conclusion, the Supreme Court's judgment clarified the importance of jurisdictional boundaries for assessing authorities under the Sales Tax Act, emphasizing that jurisdictional objections are fundamental and cannot be waived. The decision reaffirmed that assessments made without proper jurisdiction are void, highlighting the significance of adherence to statutory provisions in tax assessments.