1974 (8) TMI 88 - HC - VAT and Sales Tax

Summary

Issues:
1. Rectification of original assessment due to retrospective amendment of Central Sales Tax Act.
2. Interpretation of provisions related to sales tax collection under section 10(1) of the amending Act of 1969.
3. Authority of Commercial Tax Officer to rectify assessments based on apparent mistakes.
4. Consideration of relevant material to determine if sales tax was collected.
5. Application of precedents in similar cases.

Analysis:
The case involved a revision petition by the State against the Sales Tax Appellate Tribunal's order regarding the rectification of an original assessment for the year 1964-65. The issue arose due to the retrospective amendment of the Central Sales Tax Act and the introduction of section 6(1A), impacting the exemption for inter-State sales of cotton based on sales tax collection as per section 10(1) of the amending Act of 1969. The Commercial Tax Officer sought to rectify the assessment as the assessee's bills indicated prices inclusive of tax without separately mentioning Central sales tax, leading to the belief that sales tax had been collected.

The Tribunal allowed the dealer's appeal, stating that the Commercial Tax Officer could rectify only apparent mistakes without fresh inquiry or new material. However, the revision petition argued that the Tribunal's view contradicted the Supreme Court's decision in a similar case, emphasizing the officer's authority to issue rectification notices and afford opportunities to assessees to prove non-collection of sales tax post-amendment.

The High Court agreed with the revision petition, highlighting that the mere mention of prices inclusive of tax in bills was not conclusive evidence of tax collection. It emphasized the need to consider additional factors like pricing for intra-State sales, correspondence with buyers, and intentions to pass on sales tax costs. Referring to precedents, the court stressed the importance of thorough investigation and collection of relevant material before concluding whether sales tax was collected or not.

Consequently, the Tribunal's order and previous authorities' decisions were set aside, and the matter was remitted to the assessing authority for a fresh decision based on the court's guidance. The court did not award any costs in this matter, concluding the judgment.