1994 (8) TMI 285 - HC - VAT and Sales Tax

Summary

Issues:
Jurisdiction of revising assessment order under section 10-B of the U.P. Sales Tax Act for the assessment year 1981-82 when an appeal is pending, application of the principle of merger of orders, validity of notices issued by Deputy Commissioner under U.P. Sales Tax Act and Central Sales Tax Act, relevance of previous judgments on similar provisions, interpretation of appellate authority's powers under section 9(3) of the U.P. Sales Tax Act.

Analysis:
The case involved a challenge to the jurisdiction of revising an assessment order under section 10-B of the U.P. Sales Tax Act for the assessment year 1981-82 while an appeal was pending. The petitioner contended that as per section 10-B(3) of the Act, no order can be passed to revise an order subject to appeal under section 9 or an order passed by the appellate authority under that section. The argument relied on a judgment citing the principle of merger of orders, similar to a decision under the Income-tax Act. The court noted that the appellate authority's power under section 9(3) is extensive, allowing confirmation, variation, annulment, or enhancement of the assessment amount. The court agreed with the principle of merger of orders, stating that the entire assessment order merges in the appellate order, regardless of the issues raised or decided.

The court emphasized that even if the matter subject to the notice was not part of the assessment or appellate order, revision under section 10-B was not permissible. Any unassessed matter could be dealt with under section 21 of the U.P. Sales Tax Act. The court highlighted that fresh proceedings could not be initiated under section 10-B for the assessment year 1981-82, which was already covered by assessment orders. An interim order had been passed earlier, allowing proceedings under section 10-B to continue without serving final orders until further court directions.

The court ultimately allowed the writ petition, issuing a writ of certiorari to quash the notices under section 10-B of the U.P. Sales Tax Act and the proceedings based on them. The judgment was based on the interpretation of statutory provisions, application of the principle of merger of orders, and the limitations on revising assessment orders while appeals are pending. The court's decision was in line with previous judgments on similar provisions, ensuring consistency in legal interpretation and application.