2013 (6) TMI 29 - HC - VAT and Sales Tax

Claim for deductions in the absence of requisite declarations denied - petitioner s inability to furnish details which was lost because of failure of the computer - Revision application to grant the sufficient time to reconstruct the data dismissed - Held that - Appellate Deputy Commissioner, Commercial Tax, Indore had specifically directed the Assessing Authority to look into the B-File of the cases and thereafter decide the matter on merits & if B File is not available then appellant be directed to submit a duplicate copy of the information was not have not been complied with by the Assessing Authority in its correct perspective inasmuch as no finding has been recorded by the Assessing Authority about the availability or non-availability of B File. True it is the petitioner also did not submit the duplicate documents, but as it is clear from the order that it was the duty of the Assessing Authority to have directed the appellant in case of non-availability of B File, to submit duplicate. Thereafter, before the Revisional Authority, when the petitioner had submitted an application seeking time to produce the duplicates, the prayer should have been allowed, but it was denied on the ground that no specific period is mentioned in the application within which the petitioner would submit duplicate copy of the declaration and other relevant material. This specific time limit if not asked for by the petitioner could have been fixed by the Revisional Authority itself. Sett aside the order passed by the Revisional Authority with a liberty to the petitioner to submit duplicate declarations and supporting material within two months from the date of appearance of the petitioner before the Revisional Authority. The petitioner shall appear before the Revisional Authority on 26.06.2013.

Summary

Issues:
Challenging order dismissing revision petition under Madhya Pradesh Commercial Tax Act, 1994 for the period from 01.04.1991 to 31.03.1992.

Analysis:
The petitioner, engaged in consumer products business, challenged an order by the Additional Commissioner, Commercial Tax, Indore, regarding assessment for the mentioned period. The petitioner claimed to have submitted returns and paid taxes based on those returns. However, due to some missing details, an additional demand was raised by the authority. The petitioner appealed the order, and the Appellate Deputy Commissioner directed a fresh assessment, emphasizing providing a reasonable opportunity for explanations against proposed additions. Despite the petitioner's contentions that all necessary details were submitted, the Assessing Authority upheld the original order, leading to further appeals and revisions. The Revisional Authority dismissed the revision due to lack of specified time for data reconstruction. The High Court noted discrepancies in the handling of the case by the authorities, emphasizing the failure to comply with previous directions to consider B-File and request duplicates if necessary. Consequently, the High Court set aside the Revisional Authority's order, allowing the petitioner two months to submit duplicate declarations and supporting material.

This judgment highlights the importance of procedural fairness and compliance with appellate directions in tax assessment cases. The High Court intervened to rectify the failure of the authorities to follow previous directives, ensuring the petitioner's right to provide necessary documentation within a specified timeframe. The decision underscores the significance of granting reasonable opportunities for parties to present their case fully and rectify any deficiencies in the assessment process.