Court quashes Revenue Recovery Certificate, sets aside impugned orders, allows fresh assessment.

The court allowed the petition, quashing the Revenue Recovery Certificate, cancellation of the registration certificate, and the order of revision. The impugned orders were set aside as they were based on assessment orders that had been subsequently set aside by the Revisionary Court. The court held that fresh assessment following the revisionary order could provide a new cause of action if necessary. The writ of certiorari was issued, no costs were awarded, and any security amount deposited was to be refunded.

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Issues:
Challenge to sales tax assessments, Revenue Recovery Certificate, Cancellation of sales registration certificate, Order of revisionary authority, Writ of mandamus for disposal of revision filed arising out of three assessment orders.

Analysis:
The petitioner, a dealer in hydrogenated oil, sought to quash sales tax assessments for the period September 16, 1987 to March 31, 1989, along with other reliefs. The assessments were related to transactions with another dealer in Indore, resulting in a demand of Rs. 5,24,460. The petitioner filed revisions against the assessment orders and applied for a stay on execution. However, the revisionary authority did not decide on the revisions or the stay application. Meanwhile, the sales tax authorities issued a Revenue Recovery Certificate for the recovery of the tax amount and canceled the petitioner's registration certificate. The petitioner challenged these actions through a revision, which was dismissed. Subsequently, the Revisionary Court allowed the revisions and set aside the assessment orders, remanding the cases for fresh assessment.

During the hearing, the court considered the subsequent events where the revisionary authority set aside the assessment orders, rendering the issues raised in the petition moot. As the basis for the impugned demand and cancellation of the certificate was the now-set-aside assessment orders, the court concluded that the impugned orders could not stand. The court held that the fresh assessment, following the revisionary order, could provide a new cause of action for the authorities if necessary. Consequently, the court allowed the writ, quashing the Revenue Recovery Certificate, cancellation of the registration certificate, and the order of revision.

In the final judgment, the court allowed the petition, quashing the impugned orders through the issuance of a writ of certiorari. No costs were awarded, and any security amount deposited by the petitioner was to be refunded.

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