1979 (9) TMI 180 - HC - VAT and Sales Tax

Summary

Issues:
1. Jurisdiction of Sales Tax Officer under section 21
2. Validity of proceedings initiated for verification of information
3. Legality of continuance of proceedings after remand in original assessment

Jurisdiction of Sales Tax Officer under section 21:
The case involved a dispute regarding the jurisdiction of the Sales Tax Officer under section 21, as the notice was issued by an officer from a different sector than where the assessee was located. The argument raised was that the proceedings were initiated by an officer without proper jurisdiction. However, the court did not delve into this issue extensively as it found another argument raised by the assessee to be more substantial.

Validity of proceedings initiated for verification of information:
The assessee contended that the proceedings initiated for verification of certain information received from the excise department were roving in nature and without jurisdiction. The court did not focus on this argument due to the significance of the next issue raised by the assessee regarding the legality of continuance of proceedings after remand in the original assessment.

Legality of continuance of proceedings after remand in original assessment:
The crucial issue in this case was the legality of continuing proceedings under section 21 after the original assessment had been remanded. The court referenced the decision in Ghanshyamdas v. Regional Assistant Commissioner of Sales Tax, which held that proceedings for escaped assessment cannot proceed if the original assessment proceedings are pending. The court also cited the decision in Ram Dayal Harbilas Prabhu Dayal v. Commissioner of Sales Tax, stating that once proceedings are remanded, the entire matter is open for fresh consideration. The court ultimately allowed the revision, setting aside the order of the Additional Judge (Revisions) and ruling in favor of the assessee. The court held that proceedings under section 21 could not continue once the original assessment had been remanded. The assessee was awarded costs, and the standing counsel's fee was also determined.