TaxTMI 
TaxTMI 
2012 (1) TMI 152
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.... Assam Value Added Tax Act, 2003 coupled with lack of bona fide exercise of power towards issuance of the impugned show-cause notice and the assessment order; same are liable to be interfered with. He submits that since there are no material to form a belief of any turnover as escaped in the assessment, the impugned orders are illegal and without jurisdiction. He also submitted that there being no reason for reopening of the completed assessment and that full disclosure having been made by the petitioner/company of all the materials facts necessary for completion of the assessment, the impugned orders are illegal, without jurisdiction and not tenable in law. In paragraph 22 of the writ petition, it has been stated thus:- "22. That there is no alternative, efficacious remedy available to the petitioner and the very jurisdiction of the Assistant Commissioner of Taxes in issuing the impugned show-cause notice as well as in completing the order of reassessment and in issuing notice of the demand haying been challenged in the present writ application before this honourable court, the present writ application filed under article 226 of the Constitution of India is mai....
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....question of power and jurisdiction of the High Court under article 226 of the Constitution of India, held that the jurisdiction is discretionary and the High Court is not bound to issue a writ merely because it is lawful to do so. It is also not intended thereby to supersede the authority and jurisdiction conferred upon the taxing authorities who are invested with the power to deal with the merits of the contentions raised before them. It was observed that High Court is to consider whether the act or omission complained of has resulted or is likely to result in grave injustice and whether the party approaching it has another adequate remedy which is equally efficacious. In the said case, the High Court rejected the writ petition without indicating the considerations which persuaded it to do so. Considering the jurisdictional error of the Income-tax Officer as was alleged and that there was no indication as to the grounds on which the High Court had rejected the petition, the apex court was inclined to set aside the order rejecting the petition. In Manoranjan Chakraborty [2001] 122 STC 594 (SC) ; [2001] 10 SCC 740, also the High Court dealing with the question of maintainability of....
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....le 136 of the Constitution on a technical ground. 13. The second contention urged by Mr. T. L. V. Iyer is that under section 11A, the authority did have power and the High Court had itself found in regard to paragraphs (1) to (13) and directed inquiry in respect of the clandestine removal of the goods. The assessee could have been directed to file a reply in regard to the matters concerning the incorrect valuation and the High Court ought not to have interfered. We are unable to accept the contention of the learned counsel for reasons more than one. First, as submitted by Mr. K. K. Venugopal, if an authority which has jurisdiction in regard to one aspect takes upon itself to make enquiry into a matter in respect of which it had no jurisdiction then merely because in regard to one aspect it has jurisdiction, the court cannot ignore the fact of lack of jurisdiction and allow the Tribunal to proceed with the matter in respect of which it has no jurisdiction to make inquiry. Secondly, the position, stated above, namely, that valuation once accepted under clause (a) and there being no vitiating factor, no recourse can be had to valuation under clause (b) is a settled....
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.... extent of its maximum consumption limit. Moreover, an opinion was formed on examination of accounts, audit reports and the audited balance sheet that the petitioner-company did not separately show the consumption of tobacco although other elements of raw materials had been disclosed separately with quantity and value in the audited balance sheet. It was also found that the petitioner-company has been operating 14 units of different products but is maintaining a consolidated manufacturing accounts from where actual consumption of tobacco and other materials are not identified. In response to the said show-cause notice, the petitioner filed its reply in consideration of which the assessing authority passed the impugned assessment order in which it has been recorded that on verification of return and all relevant records it has been found that there is escapement of assessment to tax under the Act. Regarding production pattern of the dealer in between tobacco and non-tobacco and consumption of tobacco products as detailed in the table indicated in the order, the assessing authority has recorded its findings that although purchase of tobacco in 2005-06 was 1.2 per cent in value terms....
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....ion on investigation of the disputed facts. The materials on record cannot lead to an interference that the allegations in the show-cause notices are wholly non-existent and that there is no foundation or basis of the allegations. In the writ petitions there is no challenge as to the vires of the statutory provisions governing the matter nor there is any question regarding violation of fundamental rights involved in the said proceedings. On examination of the materials on record, it cannot be said that the impugned orders are ex facie nullity and without jurisdiction. The basic facts on the basis of which the authority has assumed jurisdiction an the subject-matter, in my considered view, cannot be said to be on non-existent. The impugned orders, under the circumstances, cannot be said to be unauthorised and without jurisdiction. In Union of India v. Metal Box Co. of India Ltd. reported in [1996] 11 SCC 122, the Supreme Court made the following scathing observations in the matter of entertaining of the writ petition in such matter:- " . . .We find it difficult to sustain the judgment of the learned single judge and of the Division Bench, for more than one reaso....