1989 (2) TMI 393 - HC - VAT and Sales Tax

Summary

Issues:
- Appeal against rejection of waiver for assessment year 1982-83 under U.P. Sales Tax Act, 1948.
- Interpretation of the law regarding waiver application for deposit under proviso to section 9(1-B)(b) of the Act.
- Application of precedent judgments in sales tax matters.
- Jurisdiction of the Tribunal in considering appeals.

Analysis:
The judgment pertains to a revision under section 11 of the U.P. Sales Tax Act, 1948, challenging the rejection of a waiver application by the Sales Tax Tribunal for the assessment year 1982-83. The applicant, engaged in the foodgrains business, contested an assessment under section 9(2) of the Central Sales Tax Act, despite not conducting business under the said Act. The assessing authority assessed the applicant, leading to an appeal before the Deputy Commissioner (Appeals), who partially allowed the waiver application. Subsequently, a second appeal was filed before the Tribunal, which upheld the Deputy Commissioner's decision.

During the hearing, the applicant's counsel argued that the Tribunal erred in rejecting the appeal based on a previous court decision, which was under review by a larger bench. The counsel contended that until the earlier decision was overruled, it remained binding. On the other hand, the Commissioner of Sales Tax maintained that the matter was pending before a Division Bench and had not been decided yet. The court opined that unless the earlier decision was overruled by a larger bench, it remained binding on the sales tax authorities. Consequently, the court allowed the revision, setting aside the Tribunal's order and directing the Deputy Commissioner to register the appeal without insisting on the deposit, to be decided on merit.

In conclusion, the court held in favor of the applicant, emphasizing the binding nature of the precedent until overruled by a higher authority. The judgment underscores the importance of adhering to established legal principles in sales tax matters and the jurisdiction of the Tribunal in considering appeals. The decision provides clarity on the interpretation of the law regarding waiver applications for deposits under the U.P. Sales Tax Act, 1948, ensuring fair treatment of taxpayers in assessment proceedings.