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2015 (4) TMI 1097 - HC - VAT and Sales Tax


Issues:
Challenge to notices issued under Section 29(4) of the Punjab Value Added Tax Act, 2005 - Completion of best judgment assessment after the prescribed period - Interpretation of Section 29(4) of the Act - Requirement of individual notices for assessment - Legal validity of general notices posted on the website - Impact of a previous Division Bench judgment on the present cases - Possibility of Section amendment.

Analysis:
The petitioner challenged notices issued under Section 29(4) of the Punjab Value Added Tax Act, 2005, regarding completion of best judgment assessment after the specified period. The returns for the writ petitions were filed on specific dates, with the last dates for assessment completion also identified. Notably, the best judgment assessment was completed after three years in both cases, contrary to the statutory provision of Section 29(4) of the Act. This section allows assessments within three years from the date of filing the annual statement, with a provision for extension up to six years under certain circumstances as per the Commissioner's discretion.

The judgment dated 20.08.2013 by a Division Bench of the High Court in a related matter established a crucial precedent. The Division Bench ruled that Rule 86 of the Rules does not require general notices or publication on the department's website for assessment. Instead, individual notices are deemed essential for invoking assessment powers, and the absence of such renders assessment orders illegal and void. In the present cases, individual notices were not served, and reliance on general notices posted on the website was deemed insufficient in light of the Division Bench's ruling. Consequently, the Court made rules absolute in each petition based on the prayers presented.

Additionally, the Court noted the possibility of an amendment to the relevant Section in the future. While acknowledging this potential amendment, the Court refrained from expressing any opinion on the matter until such changes are implemented. This acknowledgment highlights the dynamic nature of legal provisions and the need for continuous review and potential modifications to ensure legal compliance and efficacy in tax assessment procedures. The judgment underscores the significance of procedural compliance and the adherence to legal requirements in tax assessment matters to uphold the integrity and legality of the assessment process.

 

 

 

 

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