1997 (1) TMI 500 - HC - VAT and Sales Tax

Summary

Issues:
- Assessment orders under Central Sales Tax Act and Bihar Finance Act challenged
- Claim for exempted sale disallowed
- Demand notices sought to be quashed
- Request for summons under Bihar Finance Act
- Appealability of the impugned orders
- Requirement of deposit for appeal
- Alternative remedy of revision
- Power of assessing authority under section 10 of Bihar Finance Act
- Feasibility of filing revision before Commissioner of Commercial Taxes
- Previous writ application challenging notices under Bihar Finance Act

Analysis:
The petitioner, a Government of India undertaking, filed a petition seeking to quash two assessment orders dated November 23, 1996, passed by the Deputy Commissioner of Commercial Taxes under the Central Sales Tax Act, 1956, and the Bihar Finance Act, 1981 for the year 1988-89. The petitioner claimed exempted sales under specific sections of the Central Sales Tax Act, which were disallowed by the assessing authority. Additionally, the petitioner requested the quashing of demand notices and sought a direction for summoning representatives of clients under section 10 of the Bihar Finance Act for examination and document production.

The counsel for the petitioner argued that the impugned orders were appealable under the Bihar Finance Act, but the petitioner faced liquidity issues to deposit 20% of the demanded amount as a prerequisite for appeal. The petitioner contended that due to financial constraints, the alternative remedy of appeal was not feasible, and raised a question regarding the assessing authority's failure to exercise powers under section 10 of the Bihar Finance Act. The court acknowledged the substantial tax amounts but highlighted the petitioner's ability to file a revision before the Commissioner of Commercial Taxes as an alternative remedy.

The court deliberated on granting time for filing a revision before the Commissioner within 15 days, but refrained from issuing such a direction without assessing the pending matters before the Commissioner. It was noted that the petitioner had previously challenged notices under section 20(1) of the Bihar Finance Act for the years 1988-89 to 1994-95, emphasizing the importance of accurate particulars furnished by the petitioner for assessment purposes.

The court emphasized that post the assessment orders under both tax acts, the petitioner's recourse was limited to filing an appeal or revision under the Bihar Finance Act. Consequently, the writ application was dismissed, affirming the availability of appeal and revision as appropriate remedies under the Bihar Finance Act for the petitioner.

In conclusion, the High Court dismissed the application, highlighting the availability of appeal and revision as remedies for the petitioner under the Bihar Finance Act, post the assessment orders under the Central Sales Tax Act and the Bihar Finance Act.