1990 (7) TMI 338 - HC - VAT and Sales Tax

Summary

Issues involved:
1. Validity of assessment proceedings after the death of the dealer.

Summary:
The case involved a dealer registered under the Orissa Sales Tax Act, 1947, who passed away leaving his son to continue the business. The Sales Tax Officer initiated proceedings for the years 1971-72 and made regular assessments for 1972-73 and 1973-74. The main question was whether the Tribunal was correct in setting aside the assessments or should have annulled them due to the death of the dealer.

1. The annulment of an assessment is allowed only when the taxing authority lacks jurisdiction to assess. In other cases, if there is an error requiring further inquiry, the assessment order may be set aside.

2. The jurisdiction of the Sales Tax Officer at the time of assessment depends on the date of notice service and the date of death, along with the liability of the legal representative under the Act. The Tribunal failed to consider crucial aspects such as the assessment of legal representatives and the continuity of assessment in the case of a Hindu undivided family.

3. The High Court found that the Tribunal's orders were flawed as essential facts necessary for a valid decision were not taken into account, rendering the orders defective.

4. To avoid delays, the Court accepted the available facts from the second appellate order and concluded that the Tribunal erred in law by not considering the required materials in deciding the second appeal.

5. Pursuant to section 24(5) of the Act, the Tribunal was directed to rehear the second appeal, allowing both the appellant and the Revenue to present additional evidence if necessary. If further inquiry is deemed essential, the Tribunal can keep the appeal pending and direct relevant authorities to provide the necessary facts.

In conclusion, the High Court directed the Tribunal to rehear the second appeal, emphasizing the importance of considering all relevant materials for a lawful decision, without imposing any costs.