2013 (2) TMI 663 - HC - VAT and Sales Tax

Reopening of assessment - why the originally completed assessment made by levying tax at the rate of one per cent. be not reopened and fresh assessment may not be made by levying additional tax at the rate of three per cent. with interest and penalty - Held that - On perusal of the order of the Rajasthan Tax Board, it reveals that nothing has been decided by the Rajasthan Tax Board and the matter has been simply restored/remanded to the file of the assessing officer to frame the assessment de novo, after providing an opportunity of being heard to the respondent-assessee. This court further notices that when bills and vouchers have been placed on record which clearly prove that the turnover was within the State and there is no contrary material, then the Rajasthan Tax Board was justified in setting aside the assessment with the direction to the assessing officer to look into each and every aspect in accordance with law and after hearing the respondent-assessee. Since both the parties would get fresh opportunity, therefore, this court feels that no question of law arises out of the order of the Rajasthan Tax Board so as to call for any interference of this court. This court does not find any perversity in the order of Rajasthan Tax Board as opportunity has been granted to the assessing officer to look into each and every aspect with directions to provide an opportunity of being heard to the respondent.

Issues:
1. Assessment order challenged by the petitioner.
2. Disputed turnover and application of tax rate.
3. Revision petition before the Commissioner, Commercial Taxes.
4. Appeal before the Rajasthan Tax Board.
5. Claim of sale within the State.
6. Setting aside of assessment by the Rajasthan Tax Board.
7. Justification of setting aside the assessment.
8. Opportunity of being heard to the respondent-assessee.

Analysis:
The petitioner challenged the assessment order dated February 14, 2008, passed by the Commissioner, Commercial Taxes, which was set aside by the Rajasthan Tax Board, Ajmer. The matter was remanded to the assessing officer for fresh assessment for the assessment year 1994-95, providing an opportunity of being heard to the respondent. The respondent, dealing in various non-ferrous items, was taxed at different rates as per notifications. The assessing officer reopened the assessment for levying additional tax at a higher rate, leading to a total tax liability of &8377; 2,38,794.

The respondent contended that the turnover was not part of inter-State sale and the tax was deposited at the applicable rate of one per cent for sales within the State. The Commissioner, Commercial Taxes, dismissed the revision petition, stating it was neither prejudicial nor erroneous. The respondent then appealed before the Rajasthan Tax Board, reiterating the claim of sale within the State and providing supporting documents. The Tax Board considered an Assistant Commissioner's letter confirming the disputed turnover as within the State and set aside the assessment, directing a fresh assessment by the assessing officer.

Upon review, the High Court found no perversity in the Tax Board's order, as it granted an opportunity to the assessing officer to re-examine the matter in light of the evidence provided by the respondent. The court noted that bills and vouchers clearly indicated the turnover was within the State, justifying the setting aside of the assessment. As both parties were to receive a fresh opportunity to present their case, the court concluded that no question of law warranted interference with the Tax Board's decision. Consequently, the revision petition under section 84 of the Rajasthan Value Added Tax Act, 2003 was dismissed for lacking merit.

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