1971 (10) TMI 101 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of order of assessment under section 11(4) of the Punjab General Sales Tax Act, 1948.

Analysis:
The case involved a petition under section 22(2) of the Punjab General Sales Tax Act, 1948, requesting the Sales Tax Tribunal to refer specific questions of law for opinion. The questions raised included whether the order of assessment dated 24th July, 1961, fell under section 11(4) or section 11(3) of the Act. The petitioner, a registered dealer under the Act, faced an ex parte assessment due to non-appearance, resulting in disallowance of deductions claimed and a tax liability. Subsequent appeals and revisions led to conflicting decisions on the nature of the assessment, with the Financial Commissioner ultimately setting aside the earlier order. The petitioner contended that the assessment should have been under section 11(4) rather than section 11(3), leading to the application to the Sales Tax Tribunal, which was rejected on the grounds that the case fell within section 11(3). The petitioner then approached the High Court under section 22(2) seeking a review.

The High Court addressed a preliminary objection regarding the limitation of the application under section 22(2), which was filed on 8th May, 1968. The department argued that the application was time-barred, but the petitioner explained the delay and re-filed the application on 5th January, 1971, invoking section 5 of the Limitation Act. Despite the department's contention, the court accepted the explanation for the delay, citing a previous decision to support the timeliness of the application. The court emphasized that the main reason for the delay was the counsel's clerk's malpractices, leading to the application not being re-filed promptly. The court, therefore, held the application made on 8th May, 1968, as within the prescribed time limit.

On the merits of the case, the High Court determined that the question at hand was a legal one, specifically whether the assessment order of 24th July, 1961, should be classified under section 11(4) of the Act. Given the circumstances and arguments presented, the court directed the Tribunal to refer this question of law for their opinion, along with the statement of the case. The court made no order regarding costs, concluding the judgment accordingly.