1982 (10) TMI 198 - HC - VAT and Sales Tax

Summary

Issues:
1. Justification of the Assistant Commissioner's power to accept declarations without assigning reasons.
2. Legality of assessment under section 12(5) of the Orissa Sales Tax Act for the quarter ending on 31st March, 1973.

Detailed Analysis:

1. The primary issue in this case revolves around the Assistant Commissioner's power to accept declarations without assigning reasons. The Member, Additional Sales Tax Tribunal, held that the Assistant Commissioner should not have accepted the declarations without providing reasons and subsequently reassessed the Gross Turnover and Tax Turnover. The Tribunal emphasized the importance of sufficient cause for non-production of declaration forms before the lower forum and stated that the higher forum should not accept them without valid justification. The Tribunal also highlighted that the dealer did not provide any cause for not producing the declaration forms before the assessing officer initially. However, the High Court referred to Rule 27 of the Orissa Sales Tax Rules, which mandates dealers to furnish declarations before the completion of the assessment period. The Court clarified that there is no provision prohibiting the submission of declarations at a later stage. It further explained that the Act and Rules do not restrict the acceptance of declarations as evidence before the first appellate authority, as long as the appellate authority exercises discretion. The Court cited previous judgments to support the admissibility of additional evidence by the first appellate authority and emphasized that the Assistant Commissioner's acceptance of declarations, even without reasons, was within his discretionary powers. The Court concluded that the Member, Additional Sales Tax Tribunal, was not justified in questioning the Assistant Commissioner's authority in this matter.

2. The secondary issue pertains to the legality of the assessment under section 12(5) of the Orissa Sales Tax Act for the quarter ending on 31st March, 1973. The dealer contended that the assessment was illegal as the registration certificate was granted after the application date. The Court noted that the dealer's claim lacked substantial evidence regarding the registration application date and highlighted the absence of an appeal against the lower forum's orders. The Court dismissed the dealer's contention as unsubstantiated due to the lack of supporting records and the failure to appeal against prior decisions. The Court emphasized that the absence of an appeal undermined the dealer's argument regarding the assessment's legality. Ultimately, the Court held that the dealer's challenge to the assessment lacked merit and was without substance.

In conclusion, the High Court ruled in favor of the Assistant Commissioner's discretionary power to accept declarations without providing reasons and dismissed the dealer's challenge to the assessment under section 12(5) of the Orissa Sales Tax Act. The judgment clarified the procedural aspects of accepting declarations as evidence during assessments and emphasized the importance of discretion exercised by appellate authorities in such matters.