2019 (7) TMI 1200 - HC - VAT and Sales Tax

Judgment allows fresh evidence in sales tax assessment, ensuring fairness and transparency

The judgment allowed the parties to set aside the Deputy Commissioner of Sales Tax's order for the financial year 2014-2015 and restored the assessment ... Restoration of Assessment Proceeding - review of impugned order - HELD THAT:- With regard to the withdrawal of the impugned order dated 19th March, 2019, the impugned order dated 19th March, 2019 is hereby set aside. The proceedings are restored to the file of Deputy Commissioner of Sales Tax to pass fresh, order of assessment in accordance with law. All contentions are kept open and parties are at liberty to produce fresh evidence in support of the case. The review notice dated 21st May, 2019 issued by the Joint Commissioner of Sales Tax has now become infructuous, as the basic order dated 19th March, 2019 is itself set aside - Impugned order set aside - petition allowed. Issues involved:Challenge to order of Deputy Commissioner of Sales Tax for financial year 2014-2015; Review notice issued by Joint Commissioner of Sales Tax; Agreement between parties to set aside impugned order and restore assessment proceeding; Restoration of proceedings to Deputy Commissioner for fresh assessment; Compliance with rules of natural justice in case of raising fresh issues.Analysis:1. The judgment pertains to a petition challenging the order dated 19th March, 2019 passed by the Deputy Commissioner of Sales Tax regarding the financial year 2014-2015. Additionally, a notice for review was issued by the Joint Commissioner of Sales Tax on 21st May, 2019. However, both parties agreed to set aside the impugned order and restore the assessment proceeding to the Deputy Commissioner of Sales Tax for adjudication of tax payable for the said year by the petitioner.2. As per the agreement between the parties, the impugned order dated 19th March, 2019 was set aside, and the proceedings were restored to the file of the Deputy Commissioner of Sales Tax to pass a fresh order of assessment in accordance with the law. The judgment allowed the parties to produce fresh evidence in support of their case. It was also emphasized that if the department intended to raise new issues not previously raised, they were required to provide notice to the petitioner to ensure compliance with the principles of natural justice.3. The judgment rendered the review notice dated 21st May, 2019, issued by the Joint Commissioner of Sales Tax, as infructuous since the basic order of 19th March, 2019 was set aside. Furthermore, any pending Civil Applications were disposed of as infructuous in light of the decision to set aside the impugned order. The ruling ensured that all contentions remained open for both parties, allowing them the opportunity to present their case and respond to any new issues raised in the assessment proceedings.In conclusion, the judgment addressed the challenges to the sales tax assessment order, the subsequent review notice, and the agreement between the parties to set aside the original order for a fresh assessment. It emphasized the importance of following due process and natural justice in conducting the assessment proceedings, ensuring fairness and transparency in the resolution of the tax dispute.