1983 (1) TMI 223 - HC - VAT and Sales Tax

Summary

Issues:
- Appealability of an order under section 13-A(6) of the U.P. Sales Tax Act
- Authority of the Sales Tax Officer, Mobile Squad as an assessing authority
- Legality of the amount of security demanded for the release of goods
- Interpretation of legislative history regarding appealability of orders under section 13-A

Analysis:
The High Court addressed the issue of appealability of an order under section 13-A(6) of the U.P. Sales Tax Act in a revision filed by the Commissioner of Sales Tax. The Sales Tax Officer, Mobile Squad, had checked a truck carrying goods and demanded security for their release under section 13-A(6). The Commissioner contended that no appeal lay under section 9 of the Act to the Assistant Commissioner (Judicial) from such an order. However, the Tribunal held that an appeal was permissible, and the High Court agreed, emphasizing that the deeming clause must be given full effect, and an order under section 13-A(6) is appealable.

The judgment also delved into the authority of the Sales Tax Officer, Mobile Squad, as an assessing authority. Rule 5(4) of the U.P. Sales Tax Rules deems a Sales Tax Officer empowered under section 13 or 13-A to be an assessing authority. Thus, when the Sales Tax Officer, Mobile Squad, demanded security under section 13-A(6), it constituted an order, allowing for an appeal under section 9(1) of the Act.

Regarding the legality of the security amount demanded, the Tribunal found that the penalty imposition was doubtful as the dealer's accounts were in order. Consequently, the Tribunal upheld the reduction in security by the Assistant Commissioner (Judicial). The High Court concurred with this view, noting the absence of any infirmity in the Tribunal's decision on the security amount.

Furthermore, the judgment analyzed the legislative history to interpret the appealability of orders under section 13-A. The Court traced the evolution of the relevant provisions, highlighting the initial bar on appeals against section 13-A proceedings, which was subsequently relaxed to permit appeals in certain cases. This historical context supported the Tribunal's decision that an appeal lay to the Assistant Commissioner (Judicial) in this instance.

In conclusion, the High Court dismissed the revision, upholding the appealability of orders under section 13-A(6), affirming the Sales Tax Officer, Mobile Squad's authority as an assessing authority, validating the reduced security amount, and interpreting the legislative history to support the appealability of such orders. Costs were assessed at Rs. 200.