2008 (7) TMI 553 - SC - VAT and Sales Tax

Whether in the light of the observations of the Division Bench on the irregularities as also the conduct of the assessing officer, could the assessment orders be said to be null and void, as pleaded on behalf of the appellants? Held that - Despite scathing observations by the Division Bench on the conduct of the assessing officer, it was a case of an irregularity in assessment proceedings by the officer, who was not bereft of authority to assess the appellant. At best, it was an illegality, which defect was capable of and has been cured by the High Court by setting aside the orders and by granting consequential relief. In the conspectus of the circumstances aforesaid, we do not find any infirmity in the impugned directions given by the Division Bench of the High Court warranting interference in the exercise of our jurisdiction under article 136 of the Constitution. The appeals are devoid of any merit

Issues Involved:
1. Legality of the assessment orders under the Rajasthan Sales Tax Act, 1994, for the assessment years 1995-96 and 1996-97.
2. Allegations of tampering and ante-dating of assessment orders.
3. Jurisdiction and validity of the assessment orders passed within the statutory period.
4. Remanding of the case for fresh assessment and the implications of the High Court's directions.

Issue-wise Detailed Analysis:

1. Legality of the Assessment Orders:
The appeals were directed against the judgments and orders of the High Court of Judicature for Rajasthan, which set aside the assessment orders for the years 1995-96 and 1996-97 under the Rajasthan Sales Tax Act, 1994, and remanded the cases for fresh assessments. The High Court found that the assessment orders were not passed following the principles of natural justice, as the appellant was not given a proper opportunity to be heard.

2. Allegations of Tampering and Ante-dating:
The appellant alleged that the assessment order dated June 7, 2002, was ante-dated and actually passed on June 29, 2002, after the period of limitation had expired. The Division Bench of the High Court, upon examining the original records, found evidence of tampering and over-writings in the order sheets dated March 23, 2002, and June 25, 2002. The High Court concluded that the assessment order was an outcome of these manipulations, making it unsustainable.

3. Jurisdiction and Validity within Statutory Period:
The respondents argued that the assessment order was within the statutory period, as the Deputy Commissioner's order setting aside the previous assessment was received by the assessing officer on July 13, 2000, and thus the fresh assessment could be completed by July 12, 2002. The Supreme Court agreed, stating that even if the order was passed on June 29, 2002, it was within the prescribed time limit. The Court emphasized that not all irregular or erroneous orders are null and void; only those lacking inherent jurisdiction are nullities.

4. Remanding for Fresh Assessment:
The High Court had remanded the case for fresh assessment by a new assessing officer, citing breaches of natural justice and irregularities by the previous officer. The appellant contended that remanding the case extended the statutory period for assessment, which was beyond the jurisdiction of the assessing officer. The Supreme Court, however, upheld the High Court's decision, noting that the assessment orders were not null and void but merely irregular. The Court found no infirmity in the High Court's directions for fresh assessments, as it was a corrective measure for the procedural defects.

Conclusion:
The Supreme Court dismissed the appeals, affirming the High Court's decision to set aside the assessment orders and remand the cases for fresh assessments. The Court ruled that the assessment orders were within the statutory period and that the procedural irregularities did not render them null and void. The directions for fresh assessments were upheld as a necessary remedy for the breaches of natural justice. The appeals were dismissed with costs throughout.

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