2021 (3) TMI 795 - HC - VAT and Sales Tax

Reopening of a proceeding under Section 16 of the State Act - Form-F declarations are accepted - Classification of sale - inter-state sale or local sale - HELD THAT - The legal issue raised in this writ petition is no longer res integra and has been settled by the Hon'ble Supreme Court in the case of Ashok Leyland Ltd., to the effect that once Form F Declarations are accepted and the assessment is completed, then the question of re-assessment does not arise. Petition allowed.

Summary

Issues:
- Revision of assessment based on inspection by Enforcement Wing Officials
- Invocation of suo motu revisional powers by respondent
- Rejection of contentions by respondent despite Form F Declarations being accepted
- Legal issue regarding re-assessment after completion of assessment

Revision of Assessment based on Inspection:
The writ petition involves a dealer registered under the Tamil Nadu General Sales Tax Act, whose assessment for the year 1989-90 was completed on 28.2.1991. Subsequently, an inspection by Enforcement Wing Officials led to a notice proposing to revise the assessment, which was objected to by the petitioner. Despite contentions raised, a revision order was passed on 18.1.1996.

Invocation of Suo Motu Revisional Powers:
Following an appeal allowed by the Appellate Assistant Commissioner, the respondent invoked suo motu revisional powers and issued a show cause notice proposing to set aside the appellate order and restore the Assessing Officer's order. The petitioner replied in detail, citing legal precedents, including the case of Ashok Leyland Ltd. vs. State of Tamil Nadu, but the respondent confirmed the proposal in the show cause notice.

Rejection of Contentions and Legal Issue:
The respondent's rejection of the petitioner's contentions, despite Form F Declarations being accepted during the initial assessment, raised a legal issue. The petitioner relied on the Supreme Court's decision in Ashok Leyland Ltd., emphasizing that once Form F Declarations are accepted and assessment completed, re-assessment is not permissible. Citing previous judgments, the Court reiterated the legal position and set aside the respondent's order, restoring the Appellate Assistant Commissioner's decision.

Conclusion:
The High Court allowed the writ petition, setting aside the respondent's order and restoring the decision of the Appellate Assistant Commissioner. The Court emphasized the legal principle established by the Supreme Court regarding re-assessment after acceptance of Form F Declarations, highlighting the binding nature of such determinations. The judgment reaffirmed the importance of jurisdictional facts and the precedence of special provisions over general provisions in tax matters.