2019 (1) TMI 712 - HC - VAT and Sales Tax

Recovery of arrears of sales tax - CST Act - the very order of assessment made in respect of those assessment years were set aside by this Court - Held that - It is seen that the impugned demand is made in respect of three assessment years namely 2001-02, 2007-08 and 2010-11. It is also seen that in respect of the assessment year 2007-08, already an order of assessment was put to challenge before this Court in W.P.No.12986/2015 wherein the order came to be passed on 02.06.2015, wherein and whereby, the assessment order was set aside and the matter was remitted back to the Assessing Officer for fresh consideration. The impugned demand made in respect of the assessment year 2010-11 also cannot be sustained in the absence of any fresh assessment order. Therefore, it leaves the issue to be decided herein is only in respect of the assessment year 2001-02 - petition disposed off.

Summary

Issues:
Challenge to demand for arrears of sales tax under CST for assessment years 2001-02, 2007-08, and 2010-11.

Analysis:
The petitioner challenged a demand for arrears of sales tax under CST for three assessment years. The petitioner contended that the demands for the assessment years 2007-08 and 2010-11 were not valid as the assessment orders for those years had been set aside by the Court in previous writ petitions. The Additional Government Pleader for the respondent acknowledged the errors in the demands for 2007-08 and 2010-11 but stated that the representation made by the petitioner regarding the demand for 2001-02 would be considered. The Court noted that the assessment order for 2007-08 had been set aside previously, and no fresh assessment order had been passed since then. Similarly, for the assessment year 2010-11, the Court had directed the respondent to consider certain adjustments but no fresh order had been issued. Consequently, the demands for 2007-08 and 2010-11 were deemed unsustainable due to the absence of fresh assessment orders.

In conclusion, the Court found that the only issue to be decided was regarding the demand for the assessment year 2001-02. As the petitioner had already submitted a representation, the Court directed the respondent to consider it and pass an appropriate order within four weeks. Until such order was passed, no coercive steps were to be taken against the petitioner. The Court disposed of the writ petition without costs, as the demands for 2007-08 and 2010-11 were found to be unsustainable, leaving only the demand for 2001-02 for further consideration by the respondent.