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of <h1>Rajasthan High Court sets aside sales tax assessments, citing lack of jurisdiction.</h1> The Rajasthan High Court allowed Sales Tax References Nos. 13 and 14 of 1980, setting aside the best judgment assessments made by the A.C.T.O. ... - Issues Involved:1. Jurisdiction of the Assistant Commercial Taxes Officer (Anti-Evasion) over the dealer-assessee.2. Sufficiency of opportunity provided to the dealer-assessee to present its case.3. Validity and basis of the best judgment assessment made by the A.C.T.O.4. Whether the assessment order adhered to the principles of natural justice.5. Jurisdiction of the Board of Revenue to hear revisions for both years.6. Justification of the penalty imposed and the enhancement of sales turnover.Issue-wise Detailed Analysis:1. Jurisdiction of the Assistant Commercial Taxes Officer (Anti-Evasion) over the dealer-assessee:The primary issue was whether the A.C.T.O. (Anti-Evasion), Bikaner had the jurisdiction to assess the dealer-assessee when the C.T.O., Special Circle, Jodhpur had already exercised jurisdiction and received returns for the disputed periods. The court examined Notification No. F. 3(a)(28)Tax/CCT/67/130 dated October 23, 1967, which assigned jurisdiction to the C.T.O., Special Circle, Jodhpur over manufacturers with a turnover exceeding five lacs. It was noted that the A.C.T.O. (Anti-Evasion) could only assume jurisdiction if evasion or concealment of tax was detected by the C.T.O. (Anti-Evasion), Ganganagar. The court concluded that the A.C.T.O. (Anti-Evasion), Bikaner did not have the pecuniary jurisdiction over the dealer-assessee, whose turnover exceeded five lacs, and thus, the best judgment assessment made by the A.C.T.O. (Anti-Evasion), Bikaner was without jurisdiction and void.2. Sufficiency of opportunity provided to the dealer-assessee to present its case:The dealer-assessee contended that no sufficient opportunity was afforded to present its case and rebut the basis on which the A.C.T.O. made his best judgment assessment. The court did not find it necessary to delve deeply into this issue, given the primary finding that the A.C.T.O. lacked jurisdiction.3. Validity and basis of the best judgment assessment made by the A.C.T.O.:The dealer-assessee argued that the best judgment assessment was wrong and baseless. The court, having already determined that the A.C.T.O. lacked jurisdiction, rendered this argument moot. The assessment was set aside on jurisdictional grounds, making further examination of its basis unnecessary.4. Whether the assessment order adhered to the principles of natural justice:The dealer-assessee questioned whether the assessment adhered to the principles of natural justice. Given the court's finding on the jurisdictional issue, this point was not addressed in detail. The invalidity of the assessment due to lack of jurisdiction inherently implied a breach of natural justice principles.5. Jurisdiction of the Board of Revenue to hear revisions for both years:The dealer-assessee raised the issue of whether the Board of Revenue was justified in hearing the revision for both years, potentially depriving the right of special appeal. The court did not need to address this issue directly, as the primary finding of lack of jurisdiction by the A.C.T.O. rendered the revisions and subsequent orders void.6. Justification of the penalty imposed and the enhancement of sales turnover:The dealer-assessee questioned the justification for the penalty and enhancement of sales turnover. The court's jurisdictional finding nullified the best judgment assessment and any penalties or enhancements derived from it, thus rendering this issue moot.Conclusion:The Rajasthan High Court allowed Sales Tax References Nos. 13 and 14 of 1980, setting aside the best judgment assessments made by the A.C.T.O. (Anti-Evasion), Bikaner, due to lack of jurisdiction. Consequently, the orders of the Deputy Commissioner (Appeals) and the Board of Revenue were also set aside. The reference applications registered as D.B. Sales Tax Cases Nos. 34 and 35 of 1980 were dismissed as not pressed. Each party was directed to bear its own costs.
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