1973 (4) TMI 93 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of provisions under section 6A(2) of the Bihar Sales Tax Act, 1959 regarding assessment at concessional rate.
2. Validity of filing correct declaration form IX before the appellate authority after assessment.

Detailed Analysis:

Issue 1: Interpretation of provisions under section 6A(2) of the Act
The case involved a tax reference under section 33(1) of the Bihar Sales Tax Act, 1959. The assessee sold goods to a thermal power station at a concessional rate but used the wrong declaration form IXB instead of the correct form IX. The assessing authority found this irregularity and assessed the sales tax at the general rate. The Tribunal held that the correct form had to be filed before the assessing authority and dismissed the revision. The Court reframed the questions of law and emphasized that compliance with section 6A(2) was necessary to claim assessment at the concessional rate. The Court held in favor of the department on this issue.

Issue 2: Validity of filing correct declaration form IX before the appellate authority after assessment
The assessee filed the correct declaration form IX before the Deputy Commissioner after the assessment. The Additional Deputy Commissioner refused to accept the form at the appellate stage, citing contradictions with the previously filed form IXB. However, the Court referred to a previous case where it was established that the appellate authority could set aside the assessment and direct further enquiry if the correct declarations were not furnished before the assessing authority. The Court held that the Deputy Commissioner or the Tribunal could set aside the assessment and order further enquiry based on the correct declaration filed before the appellate authority. The Court ruled in favor of the assessee on this issue.

In conclusion, the Court clarified the requirements for claiming assessment at a concessional rate under section 6A(2) of the Act and upheld the authority of the appellate body to set aside assessments and order further enquiries based on correct declarations filed before them. The judgment favored the department on the interpretation of statutory provisions but ruled in favor of the assessee regarding the validity of filing correct declarations before the appellate authority after assessment.