1995 (12) TMI 352 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to ex parte orders passed under the M.P. General Sales Tax Act, 1958.

Analysis:
The petitioner, a registered dealer under the M.P. General Sales Tax Act, 1958, engaged in the business of motor parts, challenged ex parte orders passed by respondent Nos. 1 and 2. The first order, annexure A, determined the liability on the gross turnover at Rs. 3,95,000 with tax and penalty at Rs. 44,573. The petitioner contended that no proper opportunity was given for appearance and production of books of accounts, as the stock was under seizure since 1976, and the shop was sealed by the police, resulting in no sales. Despite sending a telegram on September 29, 1982, the petitioner could not appear before the assessing authority before the order was passed on September 30, 1982.

The respondents argued that the assessing authority's decision was justified as the telegram from the petitioner was received after the order was passed. However, the revisional authority's order, annexure E, was deemed unjustified by the court. The petitioner had raised the issue that the shop was closed due to seizure, and no sales occurred during the relevant period. The court found that the assessing authority should have considered this claim and conducted a proper inquiry before determining the tax liability based on previous records.

The court held that the revisional authority failed to address the crucial fact that the petitioner's shop was closed and goods were seized, leading to no sales and, therefore, no tax liability. Consequently, the petition was allowed, and the orders dated September 30, 1982, and March 30, 1984, were set aside. The case was remanded to the assessing authority for a proper examination and disposal in accordance with the law, with no costs imposed and any security amount to be refunded.