2022 (9) TMI 1407 - HC - VAT and Sales Tax

Maintainability of assessment / re-assessment order - existence of alternative remedy of appeal under Section 48 of the VAT Act - HELD THAT - The issue is covered by the decision in the case of STATE OF CHHATTISGARH AND OTHERS VERSUS TATA TELESERVICES LIMITED 2022 (12) TMI 264 - CHHATTISGARH HIGH COURT where it was held that The provisions make it abundantly clear that an assessment or re-assessment of a dealer had to be made by way of an order before exercise of powers under Section 22 of the VAT Act can be made, that too, within the period of five calendar years from the date of order of assessment. It is only in the event of passing an order, period of five calendar years, which is the limitation period, can be reckoned from the date of order of assessment. Application disposed off.

Summary

Issues:
Reference application under Section 55(2) of the Chhattisgarh Value Added Tax Act, 2005 against order dated 08.04.2022 passed by the Chhattisgarh Commercial Tax Tribunal, Raipur in Reference Case No. REF. 06/28/2021/VAT.

Analysis:
The judgment delivered by the High Court of Chhattisgarh pertains to a reference application made under Section 55(2) of the Chhattisgarh Value Added Tax Act, 2005, challenging an order passed by the Chhattisgarh Commercial Tax Tribunal. The applicant sought reference of questions of law arising from an order dated 19.03.2021 in Appeal Case No. A/28/16/2019/VAT (F.Y. 2010-11), which was dismissed by the Tribunal. The applicant, represented by Mr. Moolchand Jain, contended that the questions raised were similar to those addressed in a previous judgment of the Court in WA No. 687 of 2018 (State of Chhattisgarh, through its Principal Secretary, Commercial Tax Department & Others Vs. M/s. Tata Tele Services Limited) and related cases decided on 18.08.2022. Mr. Vikram Sharma, representing the respondent, concurred with Mr. Jain's submission.

The Court, led by Hon'ble Shri Arup Kumar Goswami, Chief Justice, disposed of the application in light of the decision rendered in WA No. 687 of 2021 and other connected cases. The judgment reflects the Court's reliance on precedent and the application of established legal principles in addressing the issues raised by the applicant. The reference to a previous judgment and the agreement of both parties on its applicability demonstrate the importance of legal precedents in guiding the resolution of disputes within the realm of tax law. The Court's decision to dispose of the application based on the precedent cited underscores the significance of consistency and uniformity in legal interpretation, ensuring predictability and fairness in the application of tax laws. The involvement of legal counsels representing both sides highlights the adversarial nature of legal proceedings and the necessity of competent legal representation in presenting arguments and advocating for the interests of the respective parties.