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1979 (4) TMI 145 - HC - VAT and Sales Tax
Issues:
Assessment of sales tax for the years 1966-67 and 1967-68. Interpretation of Section 12 of the Rajasthan Sales Tax Act - reassessment of turnover when assessed at a lower rate than prescribed. Analysis: The judgment of the Rajasthan High Court, delivered by Dwarka Prasad, J., pertains to the assessment of sales tax for the years 1966-67 and 1967-68 of M/s. Motilal Omprakash. The dispute arose when the assessing authority charged tax at 6% for the sale of certain articles, later realizing it should have been at 7%. The reference applications questioned whether reassessment under Section 12 of the Rajasthan Sales Tax Act could be done for turnover assessed at a lower rate than prescribed by the Act. The Court referred to a previous decision in Indian Hume Pipe Company Ltd. v. State of Rajasthan, where it was held that Section 12 allows reassessment not only for escaped assessment but also for assessments at too low a rate. The Court concluded that if an assessment is made at a lower rate than prescribed, recourse to Section 12 is permissible. The orders by the Deputy Commissioner and the Board of Revenue, which held otherwise, were deemed erroneous based on the precedent set by the Indian Hume Pipe case. Despite disapproving of the lower authorities' decisions, the Court declined to call for a reference in these matters due to the insignificant amounts involved - Rs. 90.72 and Rs. 258.90. As the legal position was already established by the previous case, the Court found it unnecessary to seek a reference. Consequently, the reference applications were dismissed, and each party was directed to bear their own costs. In conclusion, the Court clarified the interpretation of Section 12 of the Rajasthan Sales Tax Act regarding reassessment of turnover at a lower rate and emphasized adherence to established legal precedents. The judgment highlights the Court's discretion in deciding whether to call for a reference based on the significance of the amounts involved and the settled legal position.
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