Administrative circulars cannot control quasi-judicial tax assessment where no express statutory power exists

The Delhi Sales Tax Act, 1975 leaves classification of goods to the assessing authority on the facts of each case, and the Commissioner cannot use an administrative circular to bind officers on a matter requiring quasi-judicial determination. In the absence of an express statutory power comparable to section 37B of the Central Excise Act, 1944 or section 119 of the Income-tax Act, 1961, such a circular cannot fetter statutory discretion or direct the outcome of pending assessments. A reassessment notice issued solely in reliance on that circular therefore rests on an invalid foundation and is without authority.

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Issues: Whether the Commissioner of Sales Tax could issue a circular directing assessing authorities to treat masterbatches as unspecified goods and thereby interfere with the quasi-judicial function of assessment, and whether the reassessment notice issued in pursuance of that circular was valid.

Analysis: The Delhi Sales Tax Act, 1975 confers assessment powers on the statutory authorities and leaves classification of goods to be decided by the assessing authority on the facts of each case. In the absence of any provision comparable to section 37B of the Central Excise Act, 1944 or section 119 of the Income-tax Act, 1961, the Commissioner had no authority to issue a circular binding subordinate officers on a matter requiring judicial or quasi-judicial determination. Administrative instructions may guide officers in the administrative field, but they cannot fetter statutory discretion or direct the outcome of pending assessments. The reassessment notice expressly rested on the impugned circular and therefore stood on the same defective foundation.

Conclusion: The circular was ultra vires the Delhi Sales Tax Act, 1975, and the reassessment notice issued pursuant to it was without authority and liable to be set aside.

Ratio Decidendi: In the absence of express statutory power, an administrative circular cannot bind or control the quasi-judicial discretion of assessing authorities, and any action taken solely in reliance on such a circular is without jurisdiction.

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