2022 (1) TMI 128 - SC - VAT and Sales Tax

Validity of fresh assessment orders - HC quashed the assessment order - Instead of preferring an appeal/appeals before the First Appellate Authority against the fresh assessment orders, the dealers straight way filed writ petitions before the High Court and by impugned judgment and orders, the High Court has allowed the said writ petitions and quashed the fresh assessment orders, solely on the ground that pending suo moto revisional proceedings, the Assessing Officer ought not to have proceeded further with the fresh assessment. - HELD THAT - Nothing has been observed by the High Court on the merits of the fresh assessment orders. If the fresh assessment orders would have gone against the State, in that case the State would have been the aggrieved party and the State could have raised the objection that pending suo moto revisional proceedings against the order of remand, the Assessing Officer ought not to have proceeded further with the fresh assessments. However, in the present case the fresh assessments have gone against the respective dealers. Therefore, as such the respective dealers were required to prefer the appeals before the First Appellate Authority against the fresh assessment orders. The judgment and orders passed by the High Court quashing and setting aside the fresh assessment orders in the writ petitions under Article 226 of the Constitution of India are unsustainable - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against High Court judgment quashing fresh assessment orders.

Analysis:
The Supreme Court heard appeals against the High Court's decision to quash fresh assessment orders made by the Assessing Officer for registered dealers holding VAT Registration. The High Court allowed writ petitions by the dealers challenging the fresh assessment orders. The Court noted that the dealers should have first appealed to the First Appellate Authority before seeking writ relief directly. The fresh assessment orders were made after remand by the First Appellate Authority, while revisional proceedings were ongoing. The Court highlighted that the High Court did not assess the merits of the fresh assessment orders. Since the fresh assessments favored the State, the dealers should have appealed to the First Appellate Authority instead of seeking writ relief. Consequently, the Supreme Court held that the High Court's decision to quash the fresh assessment orders was unsustainable. Therefore, the Supreme Court allowed the appeals, quashed the High Court's judgments, and set aside the writ petitions without any order on costs.