2005 (8) TMI 638 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to assessment orders under Central Sales Tax Act and Assam General Sales Tax Act based on ex parte assessments and lack of notice to file returns.

Analysis:
The petitioner challenged two assessment orders determining tax liability under the Central Sales Tax Act, 1956 and the Assam General Sales Tax Act, 1993. The petitioner contended that the assessments were ex parte and no notice to file returns was received. The petitioner also denied the transactions leading to the tax liability and argued that the assessment orders were legally untenable. Additionally, the petitioner claimed to have filed an application for review of the assessment orders, which was not disposed of, seeking necessary orders on the review application. The petitioner alleged mala fide intentions on the part of the respondents in making the assessment orders, but these claims were not pursued during the hearing.

The respondents, represented by the Additional Advocate-General, countered the petitioner's arguments by presenting the counter-affidavit and original records. They stated that the assessments were based on the best judgment of the assessing officer, supported by the Inspector of Taxes' report on the transactions in question. The respondents provided evidence of three notices sent to the petitioner to file returns, with the petitioner allegedly evading service of two notices. Despite receiving one notice, the petitioner did not submit any return, leading the authority to complete the assessments under the relevant legal provisions.

The court considered the arguments from both parties and found that the petitioner did receive a notice to file returns, did not submit any return, and instead voluntarily paid a sum of tax. As the petitioner failed to file returns, the assessing officer proceeded with the best judgment assessment under the law. The court reviewed the assessments on merit despite a preliminary objection on maintainability due to an available appeal remedy. The court deemed it appropriate to adjudicate the matter on merit after the writ petition had been pending for six years. The court dismissed the writ petition, stating that there was no merit in the petitioner's claims and vacated the interim order previously passed.

In conclusion, the court found no merit in the petitioner's challenge to the assessment orders under the Central Sales Tax Act and the Assam General Sales Tax Act. The court upheld the assessments based on the evidence presented and the legal provisions applied, ultimately dismissing the writ petition.