1997 (8) TMI 467 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Legality of the assessment order dated November 10, 1993.
2. Validity of the notices issued on January 20, 1994, and February 9, 1994.
3. Compliance with the Assam General Sales Tax Act, 1993, and the principles of natural justice.
4. Maintainability of the writ petition in light of alternative remedies.

Issue-wise Detailed Analysis:

1. Legality of the Assessment Order Dated November 10, 1993:
The petitioner challenged the assessment order dated November 10, 1993, under section 17(5) read with section 17(1) of the Assam General Sales Tax Act, 1993, for the period July and August 1993. The petitioner argued that the assessing officer failed to consider the return filed on November 6, 1993, and proceeded with a summary assessment, indicating non-application of mind and a mechanical exercise of power. The assessment was made at 10 percent instead of the 2 percent tax paid by the petitioner, resulting in a demand for Rs. 1,27,20,891.

2. Validity of the Notices Issued on January 20, 1994, and February 9, 1994:
Following the assessment, the Superintendent of Taxes (Recovery) and Bakijai Officer, Guwahati, issued notices directing the petitioner to pay the assessed amount within 7 days and to appear personally on February 23, 1994, for default of payment. These notices were also contested in the proceeding.

3. Compliance with the Assam General Sales Tax Act, 1993, and the Principles of Natural Justice:
The petitioner was informed by the Superintendent of Taxes on August 2, 1993, about the tax liability on the sale of lottery tickets and was advised to apply for registration and pay taxes for July 1993. Despite multiple notices and reminders, the petitioner failed to submit returns with full payment. The petitioner requested extensions and submitted returns on November 6, 1993, paying only 2 percent tax. The assessing officer proceeded with a summary assessment under section 17(5) due to non-compliance with the statutory requirements. The court found that the assessing officer acted in accordance with the law and principles of natural justice, providing ample opportunities for the petitioner to comply.

4. Maintainability of the Writ Petition in Light of Alternative Remedies:
The respondents contended that the writ petition was not maintainable due to the availability of alternative and efficacious remedies under the Assam General Sales Tax Act, 1993. The court agreed, emphasizing that the appellate authority was in a better position to evaluate both factual and legal aspects of the matter.

Conclusion:
The court concluded that the petitioner failed to comply with the statutory requirements of the Assam General Sales Tax Act, 1993, and the assessing officer acted within the legal framework. The assessment order and subsequent notices were upheld, and the writ petition was dismissed with costs assessed at Rs. 10,000. The court found no equitable ground to exercise its power under Article 226 of the Constitution of India, noting that the petitioner's actions resulted in an enormous loss to the State.

Writ petition dismissed.