1984 (8) TMI 312 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the applicability of the Haryana General Sales Tax Act, 1973 on finalized assessments made before its enactment.

Analysis:
The judgment addressed the issue of whether the provisions of the Haryana General Sales Tax Act, 1973 could be applied to assessments that were finalized before the Act came into force. The Assessing Authority had finalized the petitioner's assessments for the years 1967-68 and 1968-69 before the enactment of the new Act. The Assessing Authority had exempted certain turnovers based on previous court decisions. However, the Haryana Sales Tax Act introduced a new definition of "dealer" with retrospective effect from 1955. Subsequently, the Deputy Excise and Taxation Commissioner initiated action against the petitioner-firm under the new Act, modifying the previous assessment orders to include previously exempted turnovers. The Tribunal upheld this decision, leading to the petitioner challenging the reopening of assessments.

The petitioner's counsel argued that the assessments could not be reopened as they were finalized before the enactment of the new Act, citing relevant Supreme Court cases. However, the court distinguished those cases, emphasizing that the Haryana legislature intentionally made the new provision effective from a back date. The court highlighted the legislative power to impose taxes retrospectively, citing a Supreme Court case to support this principle. The court rejected the argument that the Deputy Excise and Taxation Commissioner could only reopen assessments for the year 1968-69, emphasizing the authority's competence to act under the new provision regardless of the assessment year in question.

Ultimately, the court answered the reference in favor of the Revenue and against the assessee, upholding the applicability of the Haryana Sales Tax Act to the finalized assessments. The judgment was a joint decision by two judges, with both judges concurring on the affirmative answer to the reference.

This detailed analysis of the judgment provides insights into the court's interpretation of the retrospective applicability of tax laws and the authority's power to reopen assessments under new legislation, emphasizing the legislative intent behind retrospective provisions and the competence of authorities to act under such provisions.