2007 (5) TMI 573 - HC - VAT and Sales Tax

Summary

Issues:
Reopening of assessment based on unconsidered documents from Enforcement Branch, validity of reassessment order, interpretation of section 24 of Delhi Sales Tax Act, whether two assessment orders can stand together for the same assessment year.

Analysis:
The judgment pertains to an assessee engaged in the business of resale of photographic goods and registered as a dealer in electronic goods for the assessment year 1990-91. The assessing officer initially raised a demand of Rs. 17,91,802 against the dealer. Subsequently, the assessment was reopened due to the discovery that the dealer was taxed at a lower rate and certain documents from the Enforcement Branch were unconsidered due to time constraints. In the reassessment, an additional tax of Rs. 2,34,610 was imposed on top of the earlier demand.

The dealer appealed against both the original assessment order and the reassessment order, but both appeals were dismissed by the Additional Commissioner of Sales Tax. Further, the appeal to the Appellate Tribunal, Sales Tax was also dismissed. The assessee then sought reference of seven questions under section 45(1) of the Delhi Sales Tax Act, 1975, but the Appellate Tribunal concluded that no questions of law needed to be referred to the court.

The High Court identified two key questions of law arising from the Tribunal's order. Firstly, whether the Tribunal correctly interpreted section 24 of the Delhi Sales Tax Act in upholding the reopening of assessment based on unconsidered documents from the Enforcement Branch. Secondly, if the first question is answered affirmatively, whether two assessment orders can coexist for the same assessment year.

In the absence of any other questions being pressed or argued, the High Court issued a writ of mandamus directing the Appellate Tribunal, Sales Tax, to refer the identified questions of law for the court's opinion. The parties were instructed to appear before the Tribunal for settling the statement of the case, and ten copies of relevant documents were to be submitted to the court as per the Rules. Finally, the petition was disposed of by the court.