1998 (12) TMI 578 - AT - VAT and Sales Tax

Summary

Issues Involved:
1. Applicability of amended provisions of section 13, RST Act based on the accounting period of the assessee.
2. Whether the amended provision was procedural law and its applicability to appeals filed after the amendment date.

Issue-Wise Detailed Analysis:

1. Applicability of Amended Provisions of Section 13, RST Act Based on the Accounting Period of the Assessee:

The core issue was whether the amended provisions of section 13 of the Rajasthan Sales Tax Act, 1954, which came into effect on April 22, 1988, applied only to cases where the accounting period of the assessee commenced from that date. The Tribunal examined the facts where the assessment order was made on April 28, 1988, after the amendment, for the periods October 25, 1984-November 12, 1985, and November 15, 1985-November 1, 1986. The appellate authority dismissed the dealer's appeal due to the absence of proof of payment of tax. The Rajasthan Sales Tax Tribunal (Board) had initially held that the amendment could not be given retrospective effect and applied only to accounting periods commencing after April 22, 1988. The Tribunal referenced various legal precedents, including the Supreme Court's ruling in Hoosein Kasam Dada (India) Ltd. v. State of Madhya Pradesh, which emphasized that amendments affecting substantive rights are not retrospective unless explicitly stated.

2. Whether the Amended Provision Was Procedural Law and Its Applicability to Appeals Filed After the Amendment Date:

The Tribunal considered whether the amended provision was procedural, thus applicable to all cases where appeals were filed after April 22, 1988, regardless of the accounting period. The Tribunal highlighted the well-established rule that amendments are prospective unless explicitly or implicitly stated otherwise. The Tribunal examined three contingencies:
- When the assessment/accounting period, assessment order, and appeal filing predate the amendment but the appeal is pending.
- When the assessment/accounting period and assessment order predate the amendment but the appeal is filed post-amendment.
- When the assessment/accounting period predates the amendment, but the assessment order and appeal filing occur post-amendment.

In the third scenario, the Tribunal concluded that applying the amended provision would not amount to giving it retrospective effect. The Tribunal referenced the Supreme Court's decision in Hardeodas Jagannath v. State of Assam, where it was ruled that amendments apply to assessments and appeals filed after the amendment's effective date.

Conclusion and Judgment:

The Tribunal concluded that the amended provisions of section 13, RST Act, were not procedural law. The amended provisions applied to all cases where assessments were made and appeals filed after the amendment came into effect, regardless of the accounting period. The Tribunal overruled the Board's decision, holding that the dealer's appeal was correctly dismissed by the appellate authority for lack of proof of payment of tax. The application for revision was allowed, with no order as to costs.

Application allowed.