1977 (3) TMI 148 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of section 14(6) of the Andhra Pradesh General Sales Tax Act regarding the validity of a direction issued by the Board of Revenue as a clarification.

Analysis:
The High Court of Andhra Pradesh considered the issue of whether a direction issued by the Board of Revenue constituted a clarification under section 14(6) of the Andhra Pradesh General Sales Tax Act. The case involved an assessment made six years after the closure of the relevant assessment year, exceeding the statutory limit of four years. The assessing authority sought to exclude the period of a direction issued by the Board of Revenue from the assessment timeline. The Board's direction, issued in response to a communication from the Deputy Commissioner of Commercial Taxes regarding pending amendments to the Act, instructed to keep assessments of dealers in jaggery pending until further orders.

The Court emphasized that the direction given by the Board of Revenue was merely an administrative instruction and not a clarification as contemplated by the Act. The Court noted that the legal position was already settled by a previous decision of the High Court, and there was no ambiguity or difficulty requiring clarification from the Board. The Deputy Commissioner's request to halt assessments until legislative amendments were made did not constitute a valid reference seeking clarification. Therefore, the Court concurred with the Tribunal's decision that the Board's order did not qualify as a clarification under section 14(6) of the Act.

In conclusion, the High Court dismissed the tax revision case, upholding the Tribunal's decision and emphasizing that the Board of Revenue's direction was not a clarification within the meaning of the Act. The Court affirmed that the order was a mere administrative instruction and did not serve to extend the assessment timeline. The case was dismissed with costs, and the petition was rejected.