1992 (1) TMI 130 - SC - VAT and Sales Tax

Summary

Issues:
1. Validity of provisional assessment orders under Section 7B of the Rajasthan Sales Tax Act, 1954.
2. Applicability of exemption notifications under Central Sales Tax Act and Rajasthan Sales Tax Act, 1954 to inter-state sales turnover.
3. Jurisdiction of High Court in entertaining writ petitions at the stage of provisional assessment under Article 226 of the Constitution.
4. Effect of subsequent exemption notifications on pending appeals and provisional assessment orders.
5. Authority of assessing officer to make final assessment orders post disposal of writ petitions.

Analysis:

1. The appeals were filed challenging the order of provisional assessment made under Section 7B of the Rajasthan Sales Tax Act, 1954 for the periods 1st September, 1983 to 31st December, 1983, and 1st January, 1984 to 30th June, 1984. The assessing officer determined the turnover for both periods and issued demands at the rate of one per cent. The appellants contended that their inter-state sales turnover was exempt from tax based on certain government notifications. The High Court dismissed the writ petitions, stating that the exemption notifications were not unconditional, and the appellants should have used statutory remedies instead of invoking Article 226 of the Constitution at the provisional assessment stage. The judgment was confirmed on appeal.

2. Subsequent to the appeals, new notifications were issued under various tax acts, providing exemption from sales tax for inter-state sales. These notifications had retrospective effect. The assessing authorities and the High Court did not have the opportunity to consider the impact of these new exemptions. As the matter was still pending and the provisional assessments were not finalized under Section 10, the Supreme Court directed the assessing officer to reevaluate the case in light of the new exemption notifications. The Court left open the legal questions concerning the applicability of the exemptions and Section 8(2A) to the disputed inter-state sales.

3. Considering the prolonged pendency of the assessment since 1983-84, the assessing officer was instructed to prioritize and finalize the assessment promptly. Any directions regarding tax deposits under the provisional assessment were to await the fresh orders of the assessing officer. This decision aimed to ensure a fair and comprehensive assessment process in light of the new exemption notifications and unresolved legal issues.

This detailed analysis highlights the key legal issues addressed in the judgment, including the validity of provisional assessments, the impact of exemption notifications on inter-state sales, the jurisdiction of the High Court in provisional assessment matters, and the authority of the assessing officer to make final assessment orders post disposal of writ petitions.