1972 (7) TMI 103 - HC - VAT and Sales Tax

Summary

Issues:
1. Delay in filing appeal against sales tax assessment.
2. Rejection of appeal by Board of Revenue.
3. Interpretation of the law regarding revision of assessment orders.
4. Jurisdiction of the Board of Revenue in revising assessment orders.

Analysis:
The petitioner was assessed to sales tax for the year 1963-64 on a turnover related to the transfer of rights in a Tamil picture. The petitioner's appeal against the assessment was rejected due to a one-day delay, despite providing a medical certificate as explanation. Subsequently, upon receiving a demand notice for tax and penalty, the petitioner approached the Board of Revenue under section 34 of the Tamil Nadu General Sales Tax Act, seeking a stay on the collection. The Board summarily rejected the petition, stating there was no reason to interfere. The petitioner challenged this non-speaking order through a writ petition.

The petitioner argued that the assessment was illegal as there was no sale involved in the transaction, citing a relevant court decision. The court noted that the Board of Revenue did not consider the facts or applicable law, as the petitioner was not given a hearing and the application was summarily dismissed. The Government Pleader contended that since the petitioner attempted to file an appeal, revision of the original assessment order was not permissible. However, the court cited a precedent where a belated appeal did not bar the Board from exercising its revision power under section 34 of the Act.

The court emphasized that for the Board to reject a petition under section 34, it must be satisfied that the assessment order was effectively appealed. Since the petitioner's initial appeal was dismissed on a technicality, it was deemed ineffective. Therefore, the only order that could be revised was the original assessment order. The court found the Board's rejection order non-speaking and lacking in reasons, indicating a failure to exercise jurisdiction. Consequently, the court allowed the petition, directing the Board to reconsider the revision petition in accordance with the law and relevant decisions cited.

In conclusion, the court held in favor of the petitioner, emphasizing the importance of due process and proper consideration of facts and law by the Board of Revenue in matters of tax assessment appeals and revisions.