2003 (2) TMI 454 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of dismissal of appeal under CST Act and WBST Act for not preferring appeal against original assessment order.

Analysis:
The writ petitioner challenged the order dismissing the appeal against an assessment order dated June 25, 1998. The assessing officer initiated a suo motu review proceeding and allowed a claim under section 8(1)(b) of the CST Act. The petitioner, dissatisfied with the review order, filed an appeal under the CST Act read with section 79 of the WBST Act. The appellate authority dismissed the appeal on the ground that the petitioner did not appeal against the original assessment order as required by law. The authority treated the appeal as one for revision and declined to grant any relief. The petitioner contended that after the review, a new assessment order was passed, giving him the right to challenge it through an appeal. The respondents argued that by not appealing the original order, the petitioner accepted it and cannot challenge the reviewed order. The court held that once a new assessment order is passed after a review, the original order is considered non-existent, and the petitioner can appeal the reviewed order. The appellate authority erred in treating the appeal as one for revision and not considering its merits. The court directed the Deputy Commissioner to hear the appeal under the relevant sections and dispose of it within a month.

This judgment clarifies that after a review, a new assessment order supersedes the original, allowing the petitioner to appeal the reviewed order. The court emphasized the importance of following proper procedures and considering appeals on their merits rather than assuming their nature. The decision ensures that the petitioner is not deprived of the right to challenge an assessment based on a review. The court's directive to the Deputy Commissioner aims to ensure a fair hearing and timely resolution of the appeal.