2003 (9) TMI 715 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to notification under Assam Sales Tax Act, 1947 for denial of sales tax concession, rejection of prayer for authorisation certificate, legality of assessment orders, applicability of time-limit for passing assessment orders.

Analysis:
The batch of 11 writ petitions challenged clause (ii) of a notification under section 3-A of the Assam Sales Tax Act, 1947, denying sales tax concession from August 1, 1988, without an authorisation certificate. The petitioner, engaged in tea blending and packaging, claimed exemption based on an eligibility certificate issued under the Industrial Policy decision of the Government of Assam, 1986. The petition for an authorisation certificate was rejected, leading to a previous Civil Rule being dismissed. The respondent argued that assessment orders were valid as per law, despite the petitioner's claim of non-compliance with the time-limit under the Assam General Sales Tax Act, 1993, which was deemed inapplicable.

The petitioner contended that the denial of sales tax concession post-August 1, 1988, without an authorisation certificate, was unjust. The petitioner relied on the Industrial Policy guidelines and previous court decisions to support their claim for exemption. However, the court held that the denial was lawful as the petitioner lacked the required authorisation certificate, emphasizing that the government had discretion in granting such benefits. The court distinguished the case from precedents involving promissory estoppel, ruling against its application in this scenario.

Regarding the assessment orders, the petitioner argued that they were not passed within the prescribed time-limit under the repealed Assam Sales Tax Act, 1947. The respondent maintained that the orders were valid under section 17(4) of the repealed Act, supported by the provisions of the Assam General Sales Tax Act, 1993. The court upheld the legality of the assessment orders, ruling that they were not flawed in law. Consequently, the court dismissed the writ petitions, vacating any interim orders in place.

In conclusion, the court dismissed the writ petitions challenging the denial of sales tax concession, rejection of the prayer for an authorisation certificate, and the legality of assessment orders. The court found the denial justified due to the absence of the required certificate, upheld the validity of the assessment orders under the relevant laws, and rejected the petitioner's argument regarding the time-limit for passing the orders.