Reassessment under amended tax rules upheld where earlier defective version could not defeat action taken under the new regime.

A reassessment under the amended rule 13A was upheld because the earlier defect in the pre-2006 version of the Bihar Sales Tax Rules could not invalidate action taken under the later workable provision. The court noted that prior decisions had already found the 2000 version inadequate for not properly prescribing deductions, but the amended rule in force when the reassessment order was passed was not challenged. It also noted that the reassessment was based on alleged suppression of turnover and followed an opportunity of hearing. On that basis, no ground for interference was made out and the challenge failed.

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Issues: Whether the reassessment order could be interfered with on the ground that the earlier version of rule 13A of the Bihar Sales Tax Rules, 1983 and section 21(1)(a)(i) of the Bihar Finance Act, 1981 were unworkable or ultra vires, and whether the reassessment based on the amended rule 13A of 2006 was unsustainable.

Analysis: The challenge to the earlier version of rule 13A had already been concluded by prior decisions which held that the 2000 version was not workable because it did not adequately prescribe the manner and extent of deductions. The amended rule 13A introduced in 2006 was not challenged in the writ petition, and the impugned reassessment order was passed after that amendment came into force. The record also showed that the reassessment was initiated on the basis of alleged suppression of turnover and after opportunity of hearing was afforded. Since the operative amended rule was not questioned and the earlier defect in the pre-2006 version could not invalidate the reassessment made under the amended regime, no ground for interference was made out.

Conclusion: The reassessment order was upheld and the challenge failed.

Ratio Decidendi: A reassessment made under an amended, workable rule cannot be struck down merely because an earlier version of the rule had been declared unworkable, particularly when the amended provision is not challenged.

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