1976 (8) TMI 132 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Limitation for exercising revisional powers by the Deputy Commissioner.
2. Reasonableness of the delay in serving the revisional order on the assessee.

Summary:

1. Limitation for Exercising Revisional Powers:
The primary issue raised by the assessee was regarding the limitation period for the Deputy Commissioner to exercise revisional powers u/s 20 of the Andhra Pradesh General Sales Tax Act, 1957. The Assistant Commissioner passed an order on 12th December 1966, which was served on the assessee on 14th December 1966. The Deputy Commissioner issued a notice for revision on 1st December 1970 and passed the revisional order on 11th December 1970. The court held that the Deputy Commissioner exercised his revisional powers within the prescribed four-year period from the date of service of the Assistant Commissioner's order, thus rejecting the assessee's contention.

2. Reasonableness of Delay in Serving the Order:
The alternative argument by the assessee was that the Deputy Commissioner's order, though passed within the limitation period, was served on the assessee after an unreasonable delay of one year, five months, and eleven days. The court emphasized that administrative actions must be performed within a reasonable time. Citing precedents from the Supreme Court, the court held that the inordinate delay in serving the order was unreasonable and prejudicial to the assessee. Consequently, the court deemed the Deputy Commissioner's order not binding on the assessee due to the gross indifference and lethargy in its communication. The court allowed the revision petition and set aside the order of the Sales Tax Appellate Tribunal on this ground.

Conclusion:
The court concluded that while the Deputy Commissioner acted within the statutory limitation period, the unreasonable delay in serving the order rendered it non-binding on the assessee. The petition was allowed, and no costs were awarded as the point was not raised before the Tribunal.