Cancellation of Central Sales Tax assessments treated as effective; fresh assessment allowed within eighteen months after hearing.

A communication referring to cancellation of assessment orders was treated as cancelling the Central Sales Tax assessment orders as well, even though the applications had been filed in the form prescribed under the Bombay Sales Tax Act. The Court held that the communication was capable of being understood by both sides as covering both enactments, and that this construction avoided uncertainty between the parties. Fresh assessment was permitted within eighteen months from the date of the order, but only after giving the taxpayer an opportunity of hearing.

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Issues: Whether the communication dated 10.01.2008 was to be treated as cancelling the assessment orders under the Central Sales Tax Act for the relevant periods and, if so, whether the respondents could proceed with a fresh assessment after the lapse of time.

Analysis: The assessment orders were passed under both the Bombay Sales Tax Act and the Central Sales Tax Act, but the applications for setting aside the orders were technically filed in the form prescribed for the Bombay Sales Tax Act. The communication dated 10.01.2008 referred to cancellation of the assessment orders and was capable of being understood by both sides as covering both enactments. In the circumstances, the Court treated the communication as an order cancelling the assessment orders under the Central Sales Tax Act as on the date of the order, so that neither party would suffer from the uncertainty that had arisen. The respondents were given a further period of eighteen months from the date of the order to complete the assessment, and any fresh assessment had to be made after affording a hearing to the petitioner.

Conclusion: The communication dated 10.01.2008 was deemed to relate to the Central Sales Tax assessments, and the respondents were permitted to carry out fresh assessment within eighteen months from the date of the order after giving the petitioner an opportunity of hearing.

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