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1973 (9) TMI 96 - HC - VAT and Sales Tax
Issues:
1. Interpretation of section 24 of the Bihar Sales Tax Act, 1959 regarding the liability to pay tax in case of transfer of business. 2. Validity of notices issued under section 21 of the Act to the petitioners. 3. Right of the petitioners to challenge the order and notices issued by the Assistant Superintendent of Commercial Taxes, Jamshedpur. Analysis: 1. The petitioners challenged the order rejecting their application under section 32 of the Act and the notices issued under section 21, claiming they were not transferees of the entire business of Indian Oil Agencies. The court analyzed section 24 of the Act, emphasizing that liability arises only when the ownership of the entire business is transferred, not a part. The court referred to similar provisions in other states' Acts to support its interpretation. It concluded that a specific finding of transfer of the entire business was necessary, directing a rehearing based on this clarification. 2. The court considered the argument that the petitioners had alternative legal remedies through appeal and revision, which they had not pursued. However, it noted that the legal position regarding such remedies was unclear until a recent decision. The court held that the petitioners should not be denied relief under Article 226 of the Constitution due to the evolving legal landscape. Therefore, the court allowed the writ application in part, quashing the order and directing a rehearing based on the clarified interpretation of section 24. 3. Respondents contended that they should not be parties to the writ application and sought costs. The court rejected this contention based on the facts and circumstances of the case. The judgment, delivered by Sarwar Ali S. J., was agreed upon by Nagendra Prasad Singh J., and the application was partly allowed with directions for further proceedings under section 21(2) of the Act. No costs were awarded to the respondents, and the petitioners were advised to pursue ordinary remedies provided in the Act if aggrieved.
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