2004 (7) TMI 627 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to the legality and validity of the assessment order dated March 11, 1994 under the Assam General Sales Tax Act, 1993.

Analysis:
The writ application challenged the assessment order dated March 11, 1994, passed by the Superintendent of Taxes, Guwahati Unit-A, for the period from July 1, 1993, to February 28, 1994. The petitioner, engaged in the business of buying and selling taxable lottery tickets, received a notice on November 30, 1993, for non-submission of monthly turnover statements and due taxes. Despite the petitioner's representative appearing before the tax authority and assuring payment, an assessment order was passed on March 11, 1994, estimating the total sales proceeds at Rs. 10,00,000 based on an Inspector of Taxes' report dated March 10, 1994.

The petitioner contended that the assessment order was based on an estimate and did not consider the return sale statement submitted on the same day as the order. The State counsel argued that the writ petition was not maintainable due to the availability of statutory appeal remedies. The court noted that the assessment order did not take into account the petitioner's submitted returns and relied on the Inspector of Taxes' report without providing a copy to the petitioner. Consequently, the court found the assessment order unsustainable on the grounds of non-consideration of submitted returns and reliance on undisclosed reports.

As a result, the court set aside the assessment order dated March 11, 1994, and directed the Superintendent of Taxes, Guwahati Unit-A, to reconsider the matter based on available records, providing the petitioner with an adequate opportunity within three months from the date of receiving the court's order. The writ petition was allowed to the extent indicated, granting relief to the petitioner against the challenged assessment order.