1998 (4) TMI 512 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order under section 21 of Karnataka Sales Tax Act, 1957 based on initiation and completion period of 4 years, and existence of factual requirements.

Analysis:
1. The petitioner contested the order passed under section 21 of the Karnataka Sales Tax Act, 1957, arguing that the initiation and completion of the power under this section should be within 4 years. The petitioner relied on previous decisions, including S. Subha Rao v. Commissioner of Commercial Taxes and Keshawa Trading Company v. Commissioner of Commercial Taxes, which supported the view that initiation within 4 years suffices, and completion can extend beyond this period. The Court emphasized the interpretation of "exercisable" and "initiation" in legal dictionaries to support this stance. The petitioner referenced judgments from Andhra Pradesh and Kerala High Courts, but the Court maintained that the Karnataka High Court's ruling in Subba Rao v. Commissioner of Commercial Taxes prevails in this matter.

2. The second contention raised was regarding the existence of factual requirements for initiating the power under section 21 of the Act. The Court opined that this is a factual matter falling under the purview of the competent appellate authority. The petitioner was advised to pursue the remedy of statutory appeal under section 22 of the Act. Consequently, the Court dismissed the writ petition, directing the petitioner to follow the statutory appeal route without prejudice to their rights.

In conclusion, the Court upheld the principle that initiation of proceedings under section 21 within 4 years is sufficient, even if completion extends beyond this period. The Court also clarified that the examination of factual premises for initiating the power under section 21 is within the jurisdiction of the competent appellate authority. The judgment emphasized adherence to the Karnataka High Court's precedent in interpreting the relevant provisions of the Karnataka Sales Tax Act, 1957.