1969 (11) TMI 80 - HC - VAT and Sales Tax

Summary

Issues:
- Validity of filing a second appeal under the M.P. General Sales Tax Act, 1958.
- Impact of the new Act on rights and liabilities under the repealed Acts.
- Interpretation of provisions related to assessment and appeals under the sales tax laws.

Analysis:

1. The case involved a reference to the High Court regarding the right of the applicant to file a second appeal before the Tribunal under the M.P. General Sales Tax Act, 1958. The applicant's turnover was assessed under the Madhya Bharat Sales Tax Act, Samvat 2007, which was later repealed by the new Act that came into force on 1st April, 1959. The Tribunal rejected the second appeal, stating that the case was governed by the old Act, which allowed only one appeal. The issue was whether the applicant had the right to file a second appeal under the new Act.

2. The court analyzed the impact of the new Act on rights and liabilities under the repealed Acts. It referred to previous judgments and highlighted the proviso to section 52(1) of the new Act, which preserved the rights and liabilities under the repealed Acts. The court emphasized that the rights and liabilities, including the right to be assessed under the old Act, were preserved by the new Act. The court cited the Sales Tax Officer v. Hanuman Prasad case to support the preservation of rights and liabilities under the repealed Act.

3. The court discussed legislative amendments that validated assessments and proceedings under the old Act, which were beyond the prescribed limitation period. The introduction of section 18-A by Act 20 of 1964 allowed for assessments of turnovers covered by the repealed Act, which had not been taxed under the new Act. Subsequently, section 52(1-a) was inserted in the new Act to assess dealers under the repealed Acts, with an extended time limit of five years from the commencement of the amending Act.

4. The court concluded that the assessment made under the old Act, which was initially invalidated, was validated by the new Act's provisions. The court confirmed that the assessment in question was governed by the repealed Madhya Bharat Act, as if the new Act had not been passed. Consequently, the court determined that there was no right to a second appeal in this case.

5. The court clarified that the reference was answered based on the assumption of its validity. It highlighted that a second appeal was deemed incompetent, and any order resulting from such an appeal could not form the basis of a valid reference. The court directed the assessee to bear all costs related to the reference, including a specified hearing fee.

6. In conclusion, the High Court provided a detailed analysis of the legal issues surrounding the right to file a second appeal under the sales tax laws, the impact of the new Act on previous assessments, and the interpretation of provisions related to assessments and appeals under the repealed Acts. The judgment clarified the application of relevant legal principles and legislative amendments to resolve the specific issue raised in the reference.