1978 (2) TMI 195 - HC - VAT and Sales Tax

High Court Dismisses Appeal on Tax Assessment Outside Bihar

The Assistant Superintendent of Sales Tax and Another Versus Sunil Kumar Roy

The Assistant Superintendent of Sales Tax and Another Versus Sunil Kumar Roy - [1978] 42 STC 367 (Cal) Issues:1. Validity of assessment order made outside the State of Bihar under the Central Sales Tax Act, 1956.Analysis:The judgment in question pertains to an appeal against a judgment allowing a petition under Article 226 of the Constitution for a writ of mandamus and certiorari to recall an assessment order and notice of demand under the Central Sales Tax Act, 1956. The primary issue revolves around whether the assessment order made by the Assistant Superintendent of Commercial Taxes outside the State of Bihar was valid. The respondent operated a business in Bihar but had an office in Calcutta. The assessment in question was for the year 1966-67. The key contention was whether the officer had jurisdiction to assess outside Bihar.The relevant legal provisions under the Central Sales Tax Act, 1956, and Bihar Sales Tax Act, 1959, were crucial in determining the jurisdiction of the assessing officer. Rule 12 of the Central Sales Tax (Bihar) Rules, 1957, stipulated that the provisions of the Bihar Sales Tax Act, 1959, would apply where no provision was made in the Central Sales Tax Rules. The notification issued by the Government of Bihar specified the areas where authorities could exercise their powers. The court analyzed these provisions to ascertain the officer's jurisdiction.The court of first instance held that the assessment made outside Bihar was beyond the officer's jurisdiction, rendering it invalid. The appellant argued that the officer had jurisdiction over Bihar and the assessment location was immaterial. However, the respondent contended that the officer's powers were limited to Bihar, making the assessment outside Bihar invalid. The court agreed with the lower court's findings, emphasizing that the notification specified the area of operation for the officer, not the location of transactions.In conclusion, the High Court upheld the judgment, dismissing the appeal. The court concurred with the lower court's reasoning and found that the assessment made outside Bihar was beyond the officer's jurisdiction. The judgment emphasized the importance of legal provisions and notifications in determining the territorial jurisdiction of assessing officers under the relevant tax laws.