Industrial policy exemption claim must be decided before sales tax assessment and related declaration form requests are determined.

Where a dealer asserts exemption under the Assam Industrial Policy, 1991, the assessing authority must consider that claim as part of the assessment exercise before fixing sales tax liability. The High Court noted that assessment under the Assam General Sales Tax Act, 1993 remained within the officer's jurisdiction, but the liability on finished products could not be determined without first deciding whether the exemption applied. The pending application for declaration forms for purchase of raw materials also had to be decided before assessment proceeded.

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Issues: Whether the assessing officer was required to decide the claim for exemption under the Assam Industrial Policy, 1991 before proceeding with assessment, and to pass orders on the application for declaration forms for purchase of raw materials free of tax.

Analysis: The writ petition challenged the assessment notice on the footing that the petitioner claimed exemption from sales tax on finished products and exemption in respect of purchase of raw materials under the Assam Industrial Policy, 1991. The Court noted that although the assessing officer had jurisdiction to assess the dealer under the Assam General Sales Tax Act, 1993, the assessment was connected with the prior question whether the petitioner was entitled to exemption under the Industrial Policy. If the petitioner was exempt from sales tax on finished products, liability to sales tax on such sales would not arise. The Court therefore held that the exemption claim had to be considered in the assessment process itself, and the pending application for declaration forms also required decision.

Conclusion: The assessing officer was directed to first decide the petitioner's claim of exemption under the Assam Industrial Policy, 1991 and to pass orders on the application for declaration forms before taking up assessment.

Final Conclusion: The writ petition was disposed of by issuing a direction that the exemption claim and the request for declaration forms be decided by the assessing authority, after which the petitioner was left at liberty to pursue further remedies if aggrieved.

Ratio Decidendi: Where a dealer asserts exemption under an industrial policy, the assessing authority must address that exemption claim as part of the assessment exercise before determining sales tax liability.

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