2014 (2) TMI 1257 - HC - VAT and Sales Tax

Maintainability - reopening of assessment orders of various years - recovery of Commercial Tax under M.P. Commercial Tax Act, 1994 - entire process of assessment or reassessment has been undertaken and final orders of assessment has been passed during pendency of writ petitions before this Court - Held that - the assessment officer has conducted the assessment proceedings and now as the assessment order has been passed the petitioner should take recourse of remedy available under the statute and file an appeal before the statutory independent appellate authority, as is indicated under Section 61 of M.P. Commercial Tax Act. The question as to whether the assessment has been done properly, whether proper opportunity of hearing has been granted to the petitioner, whether relevant documents are supplied or not are all questions which can be dealt with by the competent Appellate Board. On such consideration, indulgence of this Court exercising extraordinary jurisdiction in this petition under article 226 of the Constitution is not called for. In a matter pertaining to assessment of tax, when the assessment order is based on scrutiny of account books, ledge, vouchers and other materials, the assessment being based on certain factual aspects of the matter, such questions can be more appropriately dealt with by the statutory Appellate Board than by a writ court under Article 226 of the Constitution. Therefore, the petitioner is given the liberty to challenge the order of assessment in accordance to provisions of M.P. Commercial Tax Act before the assessment Board. - Petition disposed of

Summary

Issues:
Challenge to interlocutory proceedings under M.P. Commercial Tax Act, 2002 - Show-cause notice for assessment - Proposals for reassessment - Maintainability of writ petitions post final assessment orders - Proper opportunity of hearing - Supply of relevant documents - Remedies under Section 61 of M.P. Commercial Tax Act - Jurisdiction of Appellate Board - Pre-deposit of amount - Grounds for interference by the Court.

Analysis:
The petitioner challenged interlocutory proceedings conducted by the Assessing Authority under the M.P. Commercial Tax Act, 2002, following a search by the Custom and Central Excise department in the petitioner's premises in 2006. Subsequently, show-cause notices were issued for assessment and reassessment based on irregularities detected. The petitioner contended that the assessment was improper, lacking proper opportunity of hearing, relevant document supply, and chance to rebut allegations. The Deputy Advocate General argued for the maintainability of writ petitions post final assessment orders, urging the petitioner to appeal under Section 61 of the Act instead of Court intervention.

The Court considered the nature of the matter involving commercial tax recovery and the assessment proceedings conducted by the officer. It emphasized that the petitioner should avail the statutory remedy by filing an appeal before the independent Appellate Authority as prescribed in Section 61 of the M.P. Commercial Tax Act. The Court reasoned that questions regarding the propriety of assessment, hearing opportunities, and document supply could be addressed by the Appellate Board, emphasizing the limited scope of Court's extraordinary jurisdiction under Article 226 of the Constitution.

Moreover, the Court highlighted that challenges related to pre-deposit could be pursued through appropriate channels, including seeking waiver or challenging the pre-deposit requirement as per the law. The judgment underscored that issues concerning tax assessment, based on factual scrutiny of accounting records and materials, were best addressed by the statutory Appellate Board rather than through writ jurisdiction. Consequently, the Court disposed of the petitions, granting liberty to the petitioner to challenge the assessment order before the Assessment Board under the M.P. Commercial Tax Act.