1982 (2) TMI 274 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to notice issued under Rajasthan Sales Tax Act, 1954 - Provisional assessment order - Jurisdiction of High Court under article 226 of the Constitution of India.

Analysis:
The petitioner challenged a notice issued under the Rajasthan Sales Tax Act, 1954, contending that no taxable turnover existed, hence no need for quarterly returns. The petitioner argued against the notice's validity, stating it lacked jurisdiction and failed to provide reasons for tax evasion. The petitioner sought an adjournment, but the assessing authority proceeded with provisional assessment, prompting the petitioner to file a writ petition. The petitioner's counsel cited legal precedents emphasizing the need for natural justice, including recording reasons for quasi-judicial orders and providing a fair opportunity to respond to allegations.

The High Court noted the petitioner filed the writ petition after the assessing authority's provisional assessment order, making the notice challenge redundant. The Court held that the order of provisional assessment was appealable, providing an alternative remedy for challenging it. The Court emphasized that challenging the notice after the assessment order could prejudice the petitioner's appeal. The Court concluded that the petitioner's attempt to indirectly challenge the assessment order through the notice was not permissible under the extraordinary jurisdiction of the Court under article 226 of the Constitution of India. The Court dismissed the writ petitions, stating that the petitioners had an adequate remedy to challenge the assessment order through the appeal process under the Rajasthan Sales Tax Act.

In summary, the High Court dismissed the writ petitions challenging the notice under the Rajasthan Sales Tax Act, emphasizing the availability of an appeal process for challenging the provisional assessment order. The Court highlighted the limitations of invoking the Court's extraordinary jurisdiction under article 226 of the Constitution of India after the issuance of the assessment order, underscoring the importance of following the appeal process for such disputes.