1996 (3) TMI 473 - HC - VAT and Sales Tax

Summary

Issues:
Challenging final annual assessment orders under the Central Sales Tax Act for assessment years 1978-79, 1979-80, and 1980-81 due to non-compliance with court order.

Analysis:
The petitioner, M/s. McDowell and Company Limited, filed writ petitions challenging the final annual assessment orders by the Commercial Tax Officer for the assessment years 1978-79, 1979-80, and 1980-81 under the Central Sales Tax Act. These assessments were made following the directions of the Sales Tax Appellate Tribunal, modified by the High Court's order. The petitioner contended that the High Court's order was not adhered to in making the impugned assessment orders. The Tribunal had directed the assessing authority to inquire whether the transactions were inter-State or intra-State sales. However, the High Court set aside this direction as both parties proceeded on the premise that the transactions were inter-State sales. The respondent, in the impugned assessment orders, proceeded to consider the nature of the transactions, contrary to the High Court's order. The respondent's justification for this action was deemed unjustified by the Court.

The Court found that the respondent's understanding of the High Court's order was unfounded. The Tribunal's order clearly stated the questions to be decided by the Commercial Tax Officer, one of which was whether the transactions were inter-State sales. The Court had set aside the direction related to this question. The assessment orders' consideration of this question, which had already been addressed in earlier orders, was deemed beyond the scope of remand and without jurisdiction. The Court emphasized that the respondent's actions were in disregard of the specific directions provided by the Court.

The Court highlighted the respondent's oversight of the explicit directions given by the High Court regarding the show cause notice to be issued. Despite clear instructions, the respondent failed to comply with the Court's directives, leading to prolonged legal proceedings. Consequently, the Court allowed the writ petitions, setting aside the impugned assessment orders. The respondent was directed to reconsider the matter in line with the Court's previous order by issuing a fresh show cause notice to the petitioner. Costs were awarded to the petitioner, and the Commercial Tax Officer was instructed to consider any explanations provided within the specified period and make fresh assessments accordingly.