1985 (2) TMI 247 - HC - VAT and Sales Tax

Summary

Issues:
Jurisdiction of assessing authority to make reassessment after appellate order.

Analysis:
The case involved a dealer under the A.P. General Sales Tax Act whose assessment for the year 1971-72 was initially made on a best judgment basis by the assessing authority. An appeal by the dealer led to a partial allowance by the appellate authority, limiting the turnover. Subsequently, a notice was issued for reassessment under section 14(4) of the Act, resulting in a reassessment by the assessing authority. The main argument raised was whether the assessing authority had the jurisdiction to reassess after the appellate order had been passed.

The argument was based on rule 31 of the A.P. General Sales Tax Rules, 1957, which allows reassessment for escaped turnover subject to certain provisions. The crux of the issue was the interpretation of sub-rule (6) of rule 31, which restricts reassessment if an order has already been passed under section 19 or 20. The court analyzed the language of rule 31(1) and sub-rule (6), emphasizing the purpose of bringing escaped turnover to tax and ensuring finality to appellate orders.

The court held that the power of the assessing authority to reassess the escaped turnover was not barred by sub-rule (6) of rule 31 in this case. It was determined that the material indicating escaped turnover was not considered by the appellate authority, allowing the assessing authority to exercise its reassessment powers. The court emphasized the need to harmonize rule 31 with the statutory provisions of section 14(4) to collect lawful dues to the State.

The judgment highlighted the importance of giving effect to hierarchical superior orders while interpreting the rules and statutes. It was concluded that the assessing authority was within its jurisdiction to reassess the escaped turnover, as the material had not been addressed by the appellate or revisional authorities. The Tribunal's role in interpreting conflicting provisions was discussed, affirming the validity of the assessing authority's reassessment in this case. Ultimately, the Tax Revision Case was dismissed, allowing the reassessment to stand.