2010 (12) TMI 1352 - HC - VAT and Sales Tax

Summary

Issues involved: Quashing of assessment orders under MP VAT Act and Entry Tax Act due to lack of proper notice u/s 20(5) of Madhya Pradesh VAT Act, 2002.

Judgment Summary:

The petitioner sought to quash assessment orders passed by respondent no. 1 under MP VAT Act and Entry Tax Act, contending that proceedings for best judgment assessment were initiated without proper notice u/s 20(5) of Madhya Pradesh VAT Act. The respondent argued that a notice in form no.20 was issued as required, and the petitioner could appeal the order. The petitioner claimed that proceedings under sub-section (5) should only follow completion of sub-section (4) proceedings, not initiated directly. The respondent suggested raising these issues before the appellate authority.

To understand the case, sub-sections (4) and (5) of Section 20 of Madhya Pradesh VAT Act were referred. Sub-section (4) mandates a specific notice in form no.19, while sub-section (5) requires a notice in form no.20. In this case, it was noted that no form 19 notice was issued, and directly a form 20 notice was used, leading to the best judgment assessment by the Assessing Officer.

The final order passed by respondent no.1 was deemed appealable, providing the petitioner with an alternative remedy to file a statutory appeal against the order. The court decided not to entertain the petition solely based on the non-issuance of form 19 notice. The petitioner was directed to file an appeal against the order within 30 days, with the appellate authority instructed to consider all contentions, including the issue of notice forms, and decide the appeal accordingly.

In conclusion, the petition was disposed of with directions for the petitioner to appeal the order within 30 days, with the appellate authority tasked to address all contentions raised by the petitioner, including the issue of notice forms, in accordance with the law.