2023 (9) TMI 282 - HC - VAT and Sales Tax

Validity of assessment order - Constitutional Validity of Section 26(6A)(a) of the Maharashtra Value Added Tax Act, 2002 as ultra vires the Central Sales Tax, 1956 and the Central Sales Tax Rules (Registration and Turnover Rules) of 1957 as well as the Constitution of lndia - C-forms and F-forms not taken into consideration - HELD THAT - There are substance in the contentions as urged by Mr. Patkar. It is a clear case of the petitioner that all the details in regard to C-Forms and F-Forms were placed for consideration of the assessing officer which ought to have been taken into consideration by the assessing officer in passing the impugned order. It is a clear case of the petitioner that all the details in regard to C-Forms and F-Forms were placed for consideration of the assessing officer which ought to have been taken into consideration by the assessing officer in passing the impugned order - the assessment order provides no reasoning whatsoever in this regard. The assessment order neither refers to all such materials as placed on record by the petitioner nor there is a discussion as to why such material ought to be discarded in arriving at the final assessment. The only consequence from such order which is bereft of particulars and any discussion in that regard, would be that the order would be required to be held to be passed in patent non application of mind and materials on record. The impugned order cannot be sustained, it would be required to be quashed and set aside with a directions to the Assessing Officer to hear the petitioner and after considering all the materials on record, pass a fresh order in accordance with law - Petition allowed.

Summary

Issues involved:
The petition challenges an assessment order under the Maharashtra Value Added Tax Act, 2002, primarily focusing on the non-consideration of C-Forms and F-Forms by the Assessing Officer. The petitioner seeks various reliefs including quashing the assessment order, declaring a specific section as ultra vires, and staying the operation of the assessment order.

Details of the Judgment:

Issue 1: Challenge to Assessment Order
The petitioner contests the assessment order dated 29 March 2023, alleging that the Assessing Officer failed to consider the C-Forms and F-Forms submitted during the assessment process. The petitioner provided evidence of submitting these forms through correspondence and a certificate from a Chartered Accountant. The assessment order was set aside by the Maharashtra Sales Tax Tribunal, highlighting the lack of clarity regarding the disallowance of claims under the CST Act.

Issue 2: Urgent Relief
Due to the attachment of the petitioner's current account by the Deputy Commissioner of State Tax, an urgent petition was filed seeking ad-interim orders. The High Court, after considering the submissions and evidence of C-Forms and F-Forms submitted by the petitioner, stayed the order attaching the current account, deeming it unjustified.

Issue 3: Lack of Consideration of Materials
The petitioner argued that the Assessing Officer overlooked crucial materials, specifically the C-Forms and F-Forms, which should have been factored into the final assessment. The absence of discussion or reasoning in the assessment order regarding these materials led the court to conclude that the order was passed without due consideration, amounting to a patent non-application of mind.

Issue 4: Court's Decision
After reviewing the contentions of both parties and the impugned order, the court found merit in the petitioner's argument. The assessment order was deemed unsustainable due to the failure to consider essential materials. Consequently, the order was quashed, and the Assessing Officer was directed to conduct a fresh assessment after considering all relevant materials within six months.

Conclusion:
The High Court allowed the petition, setting aside the assessment order and the account attachment. The court emphasized the importance of considering all relevant materials in tax assessments to ensure a fair and reasoned decision-making process.

This summary provides a detailed overview of the legal judgment, highlighting the key issues raised, the arguments presented by both parties, and the ultimate decision of the High Court in quashing the assessment order and providing directions for a fresh assessment.