2008 (4) TMI 693 - AT - VAT and Sales Tax

Assessment proceedings invalidated due to notice non-service, leading to void orders and relief for petitioner

The court found that the initiation of assessment proceedings was invalid due to non-service of notices, rendering assessment orders and recovery ... - Issues:1. Validity of initiation of assessment proceedings2. Validity of revisional and appellate orders3. Entitlement of the petitioner to reliefsValidity of initiation of assessment proceedings:The case involved two assessment periods, one ending on March 31, 1995, and the other from May 1, 1995, to March 31, 1996. The Additional Commissioner held that he lacked authorization for revisional applications under the BF (ST) Act, 1941. The petitioner argued that notices for assessment proceedings were not served, rendering the assessment orders invalid. The contesting respondent claimed that notices were sent via registered post but returned unserved. The appellate authority erred in holding that the opportunity of being heard in the assessment proceedings was not denied, as it is a settled principle of law that in the absence of notice service, no orders affecting the assessee's interest can be passed. The recovery proceedings were also deemed invalid, and the petitioner cited a Supreme Court decision to support the argument that the initiation of assessment proceedings was void due to non-service of notices.Validity of revisional and appellate orders:The Additional Commissioner correctly refused the revisional applications due to lack of jurisdiction, but he erred in deeming them not entertainable. The assessment periods ended in 1995 and 1996, making the assessment barred by limitation upon the filing of appeals in 2004. The appellate authority did not follow the rules regarding the service of notices of appeal, rendering the impugned orders liable to be set aside. The appeals should be remanded to examine if notices were sent to the correct addresses of the assessee.Entitlement of the petitioner to reliefs:The judgment allowed both applications on contest without costs. The impugned assessment orders, appellate orders, and recovery proceedings were set aside. The assessment periods being barred by limitation, remanding the appeals or excluding time spent in the proceedings would not serve any effective purpose.In conclusion, the judgment focused on the validity of assessment proceedings, revisional and appellate orders, and the entitlement of the petitioner to reliefs. It highlighted errors in the assessment process due to non-service of notices, lack of jurisdiction for revisional applications, and non-compliance with rules for service of notices of appeal. The decision ultimately set aside the impugned orders and recovery proceedings due to the assessment periods being barred by limitation.