1994 (7) TMI 310 - HC - VAT and Sales Tax

Summary

Issues involved:
The issue involved in this case is whether an assessment completed before the enforcement of a specific clause in the Andhra Pradesh General Sales Tax Act can be reopened u/s 14(4)(cc) of the Act.

Judgment Details:

The State challenged the Sales Tax Appellate Tribunal's order allowing the assessee's appeal and holding that assessments completed before the enforcement of clause (cc) of section 14(4) of the Act cannot be reopened. The dispute pertained to the assessment year 1974-75, where the assessing authority revised the order on September 25, 1981, after the final assessment was completed on September 27, 1977. The Tribunal, relying on a previous judgment, concluded that the assessing authority could not have reopened the assessment post the enforcement of clause (cc) and ruled in favor of the assessee on August 21, 1985.

The State contended that based on another judgment, the assessing authority has the power to reopen assessments where exemptions were wrongly granted u/s 14(4)(a) and/or (b) of the Act, and thus, the Tribunal's order should be set aside. The respondent's counsel argued that there was no fresh material for the assessing authority to reopen the assessment, even if it had the power u/s 14(4)(a) and (b). The Court analyzed a previous judgment and clarified that the power u/s 14(4)(cc) can be exercised based on the order's date, not the turnover year, and that final assessments can be subject to reopening under this provision.

Referring to another Division Bench judgment, the Court affirmed that the power to reopen assessments for wrongly granted exemptions falls under clauses (a) or (b) of section 14(4), and section 14(4)(cc) is clarificatory. The Court agreed with the Government Pleader's argument and dismissed the revision case. Despite agreeing with the Government Pleader, the Court noted that the assessing authority proceeded to make the assessment based on available records, and the power u/s 14(4) can be exercised on fresh material or authoritative declarations under the Act. Therefore, the Tribunal's order was upheld on different grounds, and the tax revision case was dismissed without costs.