1982 (2) TMI 287 - HC - VAT and Sales Tax

Summary

Issues: Validity of assessment on a minor in a partnership firm, Service of demand notice and assessment orders, Bar of limitation for filing appeals

The judgment of the Allahabad High Court in this case dealt with the quashing of assessment orders passed by the Sales Tax Officer, Assistant Commissioner (judicial), and Additional Judge (Revisions) related to a business dealing in foodgrains and oilseeds. The petitioners sought relief from realizing any sales tax under the impugned assessment orders. The business was initially carried on by one petitioner and later by a new firm. Two assessments were made for different periods, and appeals were filed beyond the statutory period of limitation. The appellate authority dismissed the appeals as time-barred, leading to revisions before the Additional Judge (Revisions), who upheld the dismissal. The primary contentions raised were the validity of assessment on a minor in a partnership firm and the service of demand notices and assessment orders on the petitioners.

Regarding the validity of assessment on a minor in a partnership firm, the petitioners argued that since one petitioner was a minor and no valid partnership firm existed, no valid assessment could be made. The Court held that a minor can be a member of an association of persons, and the business was considered to be carried on by an association of persons. The assessment was deemed valid, and tax recovery was permissible from the members of the association. The definition of "dealer" under the Act included associations of persons, allowing for assessment on such entities.

On the issue of service of demand notice and assessment orders, the petitioners contended that no such notices were served. However, the Assistant Commissioner and the Additional Judge (Revisions) found that the notices were served on one of the members of the association, which was deemed sufficient. The Court emphasized that this finding of fact, being affirmed by the last fact-finding authority, could not be challenged in writ proceedings. Therefore, the dismissal of appeals as time-barred was upheld based on the service of notices.

Ultimately, the Court found no merit in the writ petition and dismissed it, vacating the stay order without costs. The judgment clarified the validity of assessment on a minor in a partnership firm and affirmed the sufficiency of service of demand notices and assessment orders for upholding the bar of limitation for filing appeals.