2017 (1) TMI 67 - HC - VAT and Sales Tax

Rectification of mistake - order which could be passed subsequent to the period already elapsed - time bar - Held that - the respondent department brought to the notice of court that the assessee was directed vide impugned order to appear on or before 30.1.1995 and there is nothing on record as to whether the assessee had appeared on or before 30.1.1995 or not. In my view that was only for the purpose of cutting time but then, A.O. ought to have issued notice and ought to have completed fresh assessment at-least as per time allowable u/s 10-B(2). Petition dismissed.

Summary

Issues Involved:
1. Challenge against orders of Rajasthan Sales Tax Tribunal and Rajasthan Tax Board related to assessment year 1980-81.
2. Remand of the matter by the Tribunal to the Assessing Officer with specific directions.
3. Rejection of rectification application by the Tax Board.
4. Failure to pass an assessment order within the prescribed time leading to the matter becoming time-barred.
5. Entitlement to refund by the petitioner.
6. Dismissal of the petition due to it becoming infructuous.
7. Directions to inform the Commissioner, Commercial Taxes, Rajasthan, for necessary action regarding the inaction of officials.

Detailed Analysis:

1. The petition challenges the orders of the Rajasthan Sales Tax Tribunal and the Rajasthan Tax Board concerning the assessment year 1980-81. The Tribunal remanded the matter back to the Assessing Officer with specific directions, including completing formalities within 30 days from the assessee's appearance and appearing for further proceedings. A rectification application by the assessee was rejected by the Tax Board.

2. Despite instructions given to the Assessing Officer 20 years ago to pass an appropriate order within 30 days from the assessee's appearance, no assessment order was issued within the prescribed time. The matter was listed multiple times to ascertain the status of the order, but no subsequent order was passed. An affidavit revealed that no assessment order was issued in over 20 years, rendering the present petition infructuous due to the time-barred nature of the assessment.

3. The court noted that no order could be passed after the period had elapsed, making the directions by the Tax Board meaningless in the context of the time-barred assessment. The counsel for the respondent department highlighted that the assessee was directed to appear before a specific date in 1995, but it was unclear if the appearance took place. The Assessing Officer should have issued a notice and completed a fresh assessment within the allowable time under the law.

4. The petitioner sought a refund based on the Tribunal's directions, but the court refrained from issuing any direction in this regard. The petitioner was advised to pursue appropriate remedies as permitted by law. Consequently, the petition was dismissed as infructuous due to the time-barred assessment, and a copy of the order was directed to be sent to the Commissioner, Commercial Taxes, Rajasthan, for necessary action regarding the officials' inaction leading to the matter becoming time-barred.