2015 (10) TMI 448 - HC - VAT and Sales Tax

High Court upholds VAT Tribunal decision, dismissing Revenue's appeal on assessment order for 1997-98.

The High Court upheld the VAT Tribunal's decision, dismissing the Revenue's appeal against the assessment order for the year 1997-98. Relying on the Emkay ... Validity of assessment order - Bar of limitation - Whether the assessment order which was passed on August 22, 2003 under section 11 of the 1948 Act was within limitation - Held that:- Substituted section 11 of the 1948 Act created a substantive right in favour of an assessee to get his assessment finalised within the time prescribed. The provisions of the amending Act would be applicable to the proceedings pertaining to the assessment year 1997-98 as the last date prescribed for the last return was after the promulgation of the Ordinance. The facts of the instant case being similar to Emkay Industries' case [2004 (5) TMI 545 - PUNJAB AND HARYANA HIGH COURT], the assessment was required to be finalised within three years. In the present case, the assessment order was required to be passed by April 30, 2001, whereas the same has been passed on August 22, 2003. Thus, there can be no escape from the finding that the assessment order dated August 22, 2003 is barred by limitation - no substantial question of law arises in this appeal - No merit in appeal - Decided against the revenue. Issues:1. Whether the VATTribunal was justified in applying the ratio of a previous judgment when facts were distinguishableRs.2. Whether the VATTribunal needed to consider the respondent's objection to the notice and submission to the jurisdiction of the Assessing AuthorityRs.Analysis:1. The appeal was filed by the Revenue against the VAT Tribunal's order for the assessment year 1997-98, raising questions of law regarding the application of a previous judgment. The respondent, engaged in sugar mill operations, contested the additional demand created by the Assessing Authority. The Deputy Excise and Taxation Commissioner affirmed the order, leading the respondent to appeal before the Tribunal. The Tribunal, citing the Emkay Industries case, held the assessment was barred by limitation under section 11 of the Punjab General Sales Tax Act, 1948. The High Court found the assessment order passed on August 22, 2003, to be beyond the limitation period set by the amended law, similar to the Emkay Industries case, thus dismissing the appeal.2. The High Court considered the amended section 11 of the 1948 Act, which imposed a three-year limitation on assessments from March 3, 1998. Referring to the Emkay Industries case, the Court emphasized the substantive right of an assessee to have assessments finalized within the prescribed time limit. As the assessment order in this case was passed on August 22, 2003, exceeding the deadline of April 30, 2001, the Court concluded that the assessment was indeed barred by limitation. Consequently, the Court dismissed the appeal, stating that no substantial question of law arose in this matter.