2010 (1) TMI 1205 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to Provisional Assessment orders u/s 25(1) of U.P. Vat Act, 2008 for the assessment year 2008-09.

Issue 1: Challenge to Provisional Assessment orders

The petitioner challenged the Provisional Assessment orders dated 1.9.2009 for the Ist, IInd, IIIrd, and IVth quarters for the assessment year 2008-09 on the ground that no provisional assessment order could be passed u/s 25(1) of U.P. Vat Act, 2008 after the furnishing of the annual return. The annual return for the assessment year 2008-09 was filed on 7.8.2009. The Assessing Authority rejected the petitioner's plea that no provisional assessment order could be made after the filing of the annual return, stating that the return was filed after the issue of the notice.

Judgment:

The High Court held that the Provisional Assessment Orders passed by the Assessing Authority for the assessment year 2008-09 on 1.9.2009 were illegal and without jurisdiction. Section 25(2) of the U.P. Value Added Tax Act, 2008 clearly states that no provisional order of assessment shall be made after the dealer has submitted the annual return of turnover and tax. The Court emphasized that once the return was filed, the Assessing Authority was no longer empowered to pass any Provisional Assessment order. As the return was filed on 7.8.2009, the Assessing Authority had no authority to pass the Provisional Assessment Order on 1.9.2009.

Outcome:

The writ petition was allowed, and the Provisional Assessment Orders dated 1.9.2009 for the Ist, IInd, IIIrd, and IVth quarters were quashed. However, the Assessing Authority was given the opportunity to pass the final assessment order based on the return filed by the petitioner in accordance with the law.