1985 (8) TMI 350 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of tax for the years 1979-80 and 1981-82
2. Disputed tax and court-fee payment
3. Rejection of appeals by the Tribunal

Detailed Analysis:
1. The judgment pertains to two revisions filed by the assessee against the Tribunal's order imposing taxes for the assessment years 1979-80 and 1981-82. The Assistant Commissioner (Judicial) set aside the assessment orders and remanded the case to the assessing authority for fresh assessment. The assessee appealed to the Tribunal, which dismissed the appeals due to improper court-fee payment under section 32(1)(b) of the U.P. Sales Tax Act, 1948.

2. The first contention raised by the assessee was that since the assessment orders were set aside, there was no disputed tax, and hence, the requirement to pay court-fee at the rate of 7 1/2 per cent did not apply. However, the court held that as long as the right of appeal exists and the assessment order is challenged, the disputed tax remains. The court emphasized that the relief sought by the assessee itself implied the existence of the assessment order, and thus, the court-fee should have been paid.

3. The second contention addressed the rejection of appeals by the Tribunal due to the deficiency in court-fee payment. The court agreed with the assessee that instead of outright rejection, the Tribunal should have provided an opportunity to rectify the deficiency in court-fee payment. The court directed the Tribunal to allow the assessee to make up the deficiency, and if done so, the appeals would be decided on merits; otherwise, the appeals would be rejected for non-payment of court-fees. The court also ordered each party to bear their own costs.

In conclusion, the court dismissed both revisions but directed the Tribunal to give the assessee an opportunity to rectify the court-fee deficiency. The judgment clarified the importance of paying court-fees on disputed tax and the need for procedural fairness in appeal processes.