2003 (9) TMI 749 - HC - VAT and Sales Tax

Summary

Issues:
Prohibition against Sales Tax Officer for completing assessment proceedings for 1973-74 and 1974-75 under U.P. Sales Tax Act and Central Sales Tax Act.

Analysis:
The petition was filed seeking a writ of prohibition against the Sales Tax Officer to prevent the completion of assessment proceedings for the years 1973-74 and 1974-75 under the U.P. Sales Tax Act and Central Sales Tax Act. The petitioner, a registered firm, had previously appealed against the assessment orders passed by the Sales Tax Officer, which were remanded back for reassessment. Despite the expiration of the limitation period for completing the assessment proceedings, the Sales Tax Officer continued with the assessments. The Tribunal had not issued a stay order until May 5, 1985, after the limitation period had expired. The High Court had set aside the Tribunal's order and reinstated the remand to the Sales Tax Officer. An interim order was passed in 1989 staying the assessment proceedings for both years.

The Court referred to section 21(4) of the Act, which states that if an assessment order is set aside and the case is remanded for reassessment, the reassessment order must be made within one year from the date of receipt of the remand order or by a specified date, whichever is later. In this case, the reassessment order should have been passed by January 28, 1983, based on the date of service of the remand order. However, the Sales Tax Officer did not pass the order by the deadline, and there was no stay order from the Tribunal until May 5, 1985. The High Court's decision to set aside the Tribunal's order and reinstate the remand indicated that the limitation period had expired. Therefore, the Court allowed the petition, issuing a writ of prohibition against the Sales Tax Officer for the assessment proceedings of 1973-74 and 1974-75. No costs were awarded in this matter.