Territorial jurisdiction and misuse of assessment power led to costs, with inquiry and disciplinary action directed after withdrawal of orders.

An assessing authority that proceeded again at Noida despite an earlier finding that service and assessment at the old address were beyond its territorial jurisdiction was found to have acted unjustifiably after the dealer's address had been transferred to Ghaziabad. Although the impugned assessment orders were withdrawn, making further adjudication on their validity unnecessary, the Court treated the repeated proceedings as the result of an illegal and avoidable exercise of power. It therefore disposed of the writ petition as infructuous on the withdrawn orders, but imposed costs and directed inquiry and disciplinary consideration against the responsible officer for misuse of jurisdiction and harassment.

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Issues: Whether the impugned assessment proceedings could survive after withdrawal of the assessment orders and whether costs and administrative directions were warranted for compelling a second round of litigation despite an earlier finding on lack of jurisdiction.

Analysis: The dispute arose from repeated assessment action taken at Noida despite the dealer's request for change of address and the earlier judicial finding that service and assessment at the old address were beyond the assessing authority's territorial jurisdiction. The Court noted that the authority again proceeded to pass assessment orders notwithstanding the earlier decision and the subsequent transfer of the business address to Ghaziabad, thereby forcing fresh litigation. During the hearing, the impugned assessment orders were stated to have been withdrawn by the assessing authority, which removed the need for further adjudication on the validity of those orders. However, the Court found the conduct of the authority unjustified and treated the litigation as the consequence of an unmindful and illegal act, warranting a costs order and administrative scrutiny.

Conclusion: The writ petition did not require adjudication on the withdrawn assessment orders and was disposed of, while costs were imposed on the erring authority and directions were issued for inquiry and disciplinary consideration.

Final Conclusion: The challenge to the impugned assessment orders stood rendered unnecessary by their withdrawal, but the Court affirmed the assessee's grievance by imposing costs and directing action against the responsible officer for abuse of jurisdiction and harassment.

Ratio Decidendi: Where an assessing authority acts beyond its territorial jurisdiction and compels avoidable litigation despite an earlier binding finding, the Court may treat the challenge as rendered unnecessary by withdrawal of the impugned order yet still impose costs and direct administrative action for misuse of power.

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