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2020 (3) TMI 9 - HC - VAT and Sales TaxEntitlement to claim deemed assessment under Section 11-E of the Punjab General Sales Tax Act, 1948 read with Rule 33-B of the Punjab General Sales Tax Rules, 1949 - notification dated 9.7.1999 - case of petitioner is that as the appeal was pending against the assessment order, it is in continuation of the original proceedings and therefore as per the notification, there should be deemed assessment - Correct interpretation of Rule 33-B of the Punjab General Sales Tax Rules, 1949 and the notification dated 9.7.1999. HELD THAT - As per Rule 1(2) of the Punjab General Sales Tax (fifth Amendment) Rules, 1949, the same shall apply to cases in which assessment is pending upto year 1994-95 and shall include even the cases in which the assessment proceedings had been initiated. From a plain reading of the Rule, it is evident that it does not cover the cases where the assessment has been finalised. In the case of the petitioner, the assessment order was passed in 1996 whereas the notification was dated 9.7.1999. Merely that the appeal was pending will not make the case of the petitioner eligible under the Rules. The case of the petitioner does not fall in the phrase 'pending for assessment' as the assessment proceedings only continued till the passing of assessment order in 1996. Petition dismissed - decided against petitioner.
Issues:
1. Interpretation of deemed assessment under Section 11-E of the Punjab General Sales Tax Act, 1948. 2. Proper interpretation of Rule 33-B of the Punjab General Sales Tax Rules, 1949 and a notification dated 9.7.1999. Issue 1: Interpretation of Deemed Assessment under Section 11-E: The case involved a reference under Section 22 of the Punjab General Sales Tax Act, 1948 regarding the entitlement to deemed assessment under Section 11-E of the Act. The Tribunal had held that the petitioner was not entitled to the claim of deemed assessment under Section 11-E, Rule 33-B, and a notification dated 9.7.1999 while substantive appeals were pending. The petitioner argued that the appeal was a continuation of the original proceedings, thus the notification should apply. However, the Court found that the Rule did not cover cases where the assessment had been finalized before the notification. The Court emphasized that the appeal proceedings did not make the petitioner eligible under the Rules. The Court also distinguished a Supreme Court decision regarding re-assessment, stating that the petitioner's case did not fall under the phrase "pending for assessment" as the assessment order had already been passed in 1996. Ultimately, both questions were answered against the petitioner. Issue 2: Interpretation of Rule 33-B and Notification Dated 9.7.1999: The Tribunal's interpretation of Rule 33-B of the Punjab General Sales Tax Rules, 1949, and the notification dated 9.7.1999 was also a key issue. The petitioner contended that the notification should apply to their case as the appeal was pending against the assessment order. However, the Court clarified that the Rule applied to cases pending up to the year 1994-95, including those where assessment proceedings had been initiated. Since the assessment order for the petitioner was passed in 1996, after the notification, they were not eligible under the Rules. The Court rejected the petitioner's reliance on a Supreme Court decision related to re-assessment, emphasizing that the appeal proceedings in this case did not fall under the phrase "pending for assessment." Consequently, the Court upheld the Tribunal's decision against the petitioner's claim for deemed assessment. This judgment by the Punjab & Haryana High Court delves into the nuanced interpretation of deemed assessment under Section 11-E of the Punjab General Sales Tax Act, 1948, and the application of Rule 33-B and a specific notification dated 9.7.1999. The Court's detailed analysis clarifies the eligibility criteria for deemed assessment, emphasizing the importance of timing in relation to the finalization of assessment orders and the impact of pending appeals on such assessments.
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