1975 (7) TMI 128 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of notification issued by State Government under the Central Sales Tax Act.
2. Applicability of the Central Sales Tax (Amendment) Act of 1972 on assessments made prior to its enforcement.

Detailed Analysis:

1. The petitioner, a firm registered under the Central Sales Tax Act, challenged notices for reopening assessments due to reliance on a notification by the State Government. The High Court examined the validity of the notification in light of a previous judgment and held it invalid as it contravened section 15(b) of the Central Act. The Court adopted reasoning from a related case to support its decision, emphasizing that the notification was not valid.

2. The Court then delved into the applicability of the Central Sales Tax (Amendment) Act of 1972 on assessments made before its enactment. Assessments for the year 1971-72 were completed before the Amendment Act came into force on 1st April, 1973. The Court referred to section 15(1) of the Amendment Act, which validated assessments made before its commencement. Despite the notification's infirmity, the Court deemed the assessment for 1971-72 as valid due to the validating provision, barring any action to reopen it solely based on the flawed notification.

3. Consequently, the Court partially allowed the writ application, ruling that the notice issued for reopening the assessment for the year 1971-72 was not legally sustainable under rule 10(2) of the Central Sales Tax (Orissa) Rules. The Court quashed the notice specific to that year and made no order regarding costs. Both judges concurred on the decision, and the application was partly allowed.