1974 (12) TMI 57 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of the order regarding the turnover of photographs for the assessment year 1970-71.
2. Jurisdictional validity of the notice issued for the assessment years 1971-72 and 1972-73.

Analysis:

Issue 1:
The petitioner challenged the order for the assessment year 1970-71 where the Sales Tax Officer held the turnover of photographs as taxable, contrary to previous years. The petitioner failed to exercise the statutory remedy of revision under section 10 of the U.P. Sales Tax Act, despite having favorable revisional orders in the past. The Court noted that the petitioner had an adequate alternative remedy available for the non-exercise of which no adequate reasons were provided. However, for subsequent assessment years, the Sales Tax Officer accepted the petitioner's contention but estimated the turnover of photo goods based on rejected account books, leading to appeals by the petitioner for those years.

Issue 2:
The question at hand was whether the appellate authority had jurisdiction to reopen the taxability of the turnover of photographs for the assessment years 1971-72 and 1972-73, which were held exempt from sales tax by the assessing authority and not part of the appeal filed by the assessee. The Court analyzed the relevant sections of the U.P. Sales Tax Act, emphasizing that an appeal lies against an assessment order, and the appellate authority has the power to confirm, reduce, enhance, or annul the order of assessment. The Court further discussed the definitions of turnover, tax liability, and the provisions related to appeals and relief prayed for in the memorandum of appeal. It was concluded that the appellate authority is confined to the subject-matter of the appeal filed by the dealer and cannot go outside it. Therefore, the notice issued by the appellate authority for the assessment years 1971-72 and 1972-73, requiring the petitioner to show cause for bringing the turnover of photographs to tax, was held to be without jurisdiction.

In conclusion, the writ petition succeeded in part, and the impugned notice issued by the appellate authority for the assessment years 1971-72 and 1972-73 was quashed. The parties were directed to bear their own costs due to the divided success in the matter.