Successor VAT Act procedure governs post-commencement reassessment of pre-repeal sales tax liabilities, preserving underlying liability.

After repeal of the Tripura Sales Tax Act, 1976 and the Tripura Additional Sales Tax Act, 1990, section 89 of the Tripura Value Added Tax Act, 2004 saved accrued liabilities and pending proceedings, but distinguished between proceedings already initiated before commencement and those started later. Proceedings begun earlier continued under the repealed laws, while reassessment notices issued after the new Act came into force had to be taken under the assessment and recovery machinery created by the VAT Act. As the notices in this matter were issued after commencement, the assessment was held without jurisdiction and set aside, with liberty to initiate fresh proceedings in accordance with law and to raise limitation objections.

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Issues: Whether, after the repeal of the Tripura Sales Tax Act, 1976 and the Tripura Additional Sales Tax Act, 1990 and the commencement of the Tripura Value Added Tax Act, 2004, reassessment notices issued for earlier assessment years had to be proceeded with under the repealed Acts or under the procedure and authority created by the new Act.

Analysis: Section 89 of the Tripura Value Added Tax Act, 2004 repeals the earlier enactments but saves accrued rights, liabilities and pending proceedings. Proceedings already initiated before the commencement of the new Act continue according to the old law under sub-section (2)(a). Where liabilities relating to the earlier period are sought to be enforced after the new Act came into force, sub-section (2)(b) and sub-section (3) show that the assessment and recovery machinery under the new Act applies, while the underlying liability may relate to the earlier period. Since the notices in the present case were issued after the commencement of the new Act, the assessment could be exercised only by officers having jurisdiction under the Tripura Value Added Tax Act, 2004.

Conclusion: The order of assessment was without jurisdiction and was set aside. Fresh proceedings were permitted to be initiated in accordance with law, with liberty to the assessee to raise all available objections, including limitation.

Ratio Decidendi: In respect of liabilities arising under a repealed sales tax regime, if reassessment proceedings are initiated after the commencement of the successor VAT Act, the assessment and recovery must be undertaken by the authorities and procedure provided under the successor Act, subject to the saving of the underlying liability.

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