1996 (4) TMI 479 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of section 40 of the Haryana General Sales Tax Act, 1973.
2. Validity of the Tribunal's decision to quash the Commissioner's order.
3. Conflict between rule 29(v) of the Punjab General Sales Tax Rules, 1949, and section 5(1) of the Central Sales Tax Act, 1956.
4. Legality of the assessment order exempting exports under rule 29(v) of the Punjab General Sales Tax Rules, 1949.

Analysis:
The judgment pertains to a petition filed under sub-section (2) of section 42 of the Haryana General Sales Tax Act, 1973, requesting the Sales Tax Tribunal to refer questions of law to the High Court. The case involves an assessment year of 1973-74 concerning the tax assessment of a dealer, who exported goods through an export house. The Commissioner revised the assessment order based on a Supreme Court judgment, leading to a series of revisions and remands by different authorities. The Tribunal initially supported the dealer's position, but later reversed its stance based on a different interpretation of the Supreme Court judgment in another case.

The State of Haryana challenged the Tribunal's decision, arguing that the Commissioner was justified in invoking section 40 of the Act and setting aside the assessment order. The High Court, after hearing arguments, found the Tribunal's decision incorrect and identified a key question of law regarding the legality of the Commissioner's actions under section 40. The High Court directed the Tribunal to refer this question for decision.

Regarding the conflict between rule 29(v) of the Punjab General Sales Tax Rules, 1949, and section 5(1) of the Central Sales Tax Act, 1956, the High Court noted that this issue did not directly arise from the Tribunal's order as the Tribunal had not decided on the dealer's entitlement to exemption for exports. Similarly, the legality of the assessment order exempting exports under rule 29(v) was not addressed by the Tribunal on merits. As a result, these questions were deemed not arising from the Tribunal's order.

Ultimately, the High Court allowed the petition, directing the Tribunal to refer the identified question of law for decision. The parties were left to bear their own costs in the matter. The judgment highlights the complexity of tax assessments and the importance of legal interpretations in resolving disputes between tax authorities and dealers.