1987 (11) TMI 344 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of fresh assessments for sales tax years 1979-80 and 1980-81.
2. Lack of notice and opportunity in revisional proceedings by Deputy Commissioner.
3. Quashing of reassessment proceedings.
4. Applicability of appeal process for assessment year 1981-82.

Analysis:
The case involved three writ petitions by M/s. Balaji Boiled Rice Mill challenging the sales tax assessments for different years. The first issue concerned the validity of fresh assessments for the sales tax years 1979-80 and 1980-81. The Deputy Commissioner had set aside the original assessments, leading to the petitioner's claims for exemption being rejected. The petitioner argued that they were unaware of the revisional proceedings and had not been given a chance to represent their case, violating principles of natural justice.

The court analyzed Section 20(4) of the Andhra Pradesh General Sales Tax Act, which mandates giving the assessee an opportunity to show cause against any proposed enhancement in assessment. The Deputy Commissioner's revisional order, which disallowed the exemption claimed by the petitioner, amounted to an enhancement of assessment. Since there was no evidence of the petitioner being notified or given a chance to respond, the court held that the order was invalid. Consequently, the court quashed the reassessment proceedings for the years 1979-80 and 1980-81.

Regarding the assessment year 1981-82, the court noted that an appeal process was available to challenge the assessment. The petitioner was advised to file an appeal within four weeks, ensuring that the appellate authority would consider it without raising any limitation issues. The court dismissed the petition for 1981-82 with liberty to appeal.

In conclusion, the court disposed of the writ petitions, ruling in favor of the petitioner by quashing the reassessment proceedings for 1979-80 and 1980-81 due to lack of notice and opportunity in the revisional proceedings. The judgment highlighted the importance of procedural fairness and adherence to statutory requirements in tax assessments.