2011 (11) TMI 585 - HC - VAT and Sales Tax

Summary

Issues:
1. Reopening of original assessment order under section 30(3) of the Rajasthan Sales Tax Act, 1994 after the expiry of five years.
2. Validity of reassessment order dated July 1, 2002.
3. Interpretation of limitation period under section 30(3) of the Act.
4. Effect of previous court judgment on limitation period for reassessment.

Analysis:
1. The Revenue challenged the Tax Board's decision regarding the reopening of the original assessment order after the limitation period of five years had expired. The Tax Board held that the reassessment order dated July 1, 2002, for the assessment years 1984-85 and 1985-86 was time-barred as the original assessment order from February 27, 1988, could not be reopened under section 30(3) of the Act. The Deputy Commissioner (Appeals) was also criticized for upholding the assessment order. The Tax Board allowed the assessee's appeals, prompting the Revenue to file revision petitions.

2. The Revenue contended that the limitation period under section 30(3) should commence after a previous High Court judgment on February 11, 2000, which involved the same assessee. However, the senior advocate for the assessee argued that the judgment did not extend the limitation period and that the reassessment order from July 1, 2002, was time-barred. The assessing authority's decision was deemed to be in violation of the five-year limitation prescribed under section 30(3) since the original assessment order was from February 27, 1988.

3. The court analyzed the impact of the previous court judgment on the limitation period for reassessment. It was concluded that the judgment from February 11, 2000, did not provide a fresh period of limitation to the Revenue for initiating reassessment proceedings. As the original assessment order allowing concessional tax rates was issued on February 27, 1988, the reassessment order on July 1, 2002, was clearly time-barred under section 30(3) of the Act.

4. Ultimately, the court upheld the Tax Board's decision, stating that the reassessment order was rightfully considered time-barred. The judgment from February 11, 2000, which was against the Revenue, did not extend the limitation period for reassessment. The court dismissed the revision petitions filed by the Revenue, answering the raised legal questions against them and ordering no costs to be paid.

In conclusion, the court affirmed the Tax Board's decision, emphasizing that the reassessment order was rightly deemed time-barred under section 30(3) of the Act, considering the original assessment order's date and the absence of a fresh limitation period granted by a previous court judgment.