2004 (8) TMI 669 - HC - VAT and Sales Tax

Assessing officer to determine tax liability on disputed commodity within 3 months

The court directs the assessing officer to assess the petitioner's tax liability on the disputed commodity based on filed returns, considering legal ... - Issues:Challenge to advance tax notices under M.P. Commercial Tax Act, 1994 for the periods in question.Analysis:The petition challenges advance tax notices issued by the Assistant Commissioner of Commercial Tax for the periods from April 1, 2001, to March 31, 2004, requiring the petitioner to pay significant amounts as advance tax. The petitioner, a dealer, filed returns stating they are not liable to pay tax on a specific commodity. The State contends that the commodity is taxable, and the petitioner must pay tax accordingly. The court notes the dispute and directs the assessing officer to make an assessment based on the returns filed by the petitioner. The officer is instructed to determine the petitioner's liability to pay tax on the commodity by considering relevant legal precedents and legislative changes. The court emphasizes that the assessing officer should conduct a factual inquiry to ascertain the tax liability accurately.The court decides to dispose of the petition by directing the assessing officer to examine the case and issue assessment orders after allowing the petitioner to participate in the proceedings. The officer must complete this process within three months. The petitioner is required to present a copy of the court's order to the assessing officer promptly. The interim order issued earlier is to remain in effect until the assessment order is passed. The writ petition is disposed of accordingly, with costs to be paid by the petitioner.