Jurisdictional facts are essential for sales tax reassessment; mere presumption cannot justify proceedings or substitute for statutory material.
Reassessment under the Bombay Sales Tax Act requires jurisdictional facts and a statutory reason to believe based on relevant material; mere presumption that imported goods were sold in Maharashtra, without proof that the person was a dealer carrying on business there or that the disputed sales occurred there, is insufficient. On that reasoning, the reassessment notices were without jurisdiction. The text also notes that where the impugned notices and assessment orders were received in Delhi and the Bombay authorities lacked jurisdiction, the writ petition could be entertained by the High Court. The assessment orders were therefore quashed on the jurisdictional challenge.
Issues: (i) Whether the sales tax authorities had jurisdiction to initiate reassessment proceedings against the petitioner under section 35 of the Bombay Sales Tax Act, 1959, in the absence of material showing that the petitioner was a dealer carrying on business in Maharashtra and that the disputed sales had taken place there. (ii) Whether the High Court had jurisdiction to entertain the writ petition.
Issue (i): Whether the sales tax authorities had jurisdiction to initiate reassessment proceedings against the petitioner under section 35 of the Bombay Sales Tax Act, 1959, in the absence of material showing that the petitioner was a dealer carrying on business in Maharashtra and that the disputed sales had taken place there.
Analysis: A dealer under section 2(11) of the Bombay Sales Tax Act, 1959 must carry on business of buying or selling goods in the State. Reassessment under section 35(1)(b) could be initiated only when the Commissioner had reason to believe, on relevant and material grounds, that sales or purchases had been concealed or that incorrect returns had been furnished. The notices were issued only on the basis of a presumption that goods imported through Bombay had been sold in Maharashtra because books were not produced. The record disclosed no prima facie material to show that the petitioner had sold goods in Maharashtra or that it answered the statutory description of a dealer in that State. A mere presumption could not substitute for the jurisdictional facts required by the statute.
Conclusion: The reassessment proceedings were without jurisdiction and the objection to jurisdiction failed against the revenue.
Issue (ii): Whether the High Court had jurisdiction to entertain the writ petition.
Analysis: The impugned notices and assessment orders were received by the petitioner at Delhi. Since the Bombay authorities lacked jurisdiction to proceed against the petitioner, the challenge to the notices and orders could be entertained by the High Court.
Conclusion: The High Court had jurisdiction to entertain the writ petition.
Final Conclusion: The impugned assessment orders were quashed and the petitioner succeeded on the jurisdictional challenge.
Ratio Decidendi: Reassessment proceedings under a taxing statute cannot be initiated on mere presumption; the authority must first have jurisdictional facts supported by relevant material and a statutory reason to believe.
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