Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 335 - HC - VAT and Sales TaxWhether on passing of the final assessment order, the provisional assessment order is discharged including the liabilities created under the provisional assessment order, if any - Validity of Provisional assessment order - Quashment of recovery notice – Pre-deposit - Mandamus to bar recovery proceeding – Rule 41 of the U.P. Trade Tax Rules, 1948 - Held that:- Judgment in Gangadhar Ramchand Oil Mills vs. Sales Tax Officer, Sector VI, Agra and another [1980 (2) TMI 244 - ALLAHABAD HIGH COURT] followed – The Rules do not contemplate determination of the turnover of a dealer for a particular period again and again, that is, once under Rule 41(3) and again under Rule 41(5) - The rule contemplates that once the turnover for a particular period falling within a particular assessment year has been determined, the dealer has to pay the tax payable on such turnover and in case he does not pay the same, the Sales Tax Officer can recover it under Rule 41(6) - Viewed in this light, the question of such determination of turnover and the liability for payment of tax thereon becoming ineffective on the assessment year coming to an end or because of initiation of proceedings for final assessment under Rule 41(5), does not arise – Therefore, the proceedings for recovery initiated for the amount under the provisional assessment shall not become non-est merely by passing of the final assessment order. The petitioners themselves have enclosed the copy of the security/sureties to the writ petition - The contents of the surety clearly indicate that the surety bound themselves to make the payment of surety amount even if the appeal is decided or become infructuous – The petitioners have also brought on the record copy of the order passed in second appeal as to the writ petition by which order the second appeal filed by the petitioners against the provisional assessment order was dismissed by Tribunal – Thus, 95% security was given under the interim order of the Tribunal which was passed in the second appeal during its pendency - The appeal having been finally dismissed, the security/surety given in pursuance of the interim order can very well be enforced by the tax authorities for realisation of the amount - In the final assessment order there is nothing that provisional assessment order has been reversed and the tax liability which was created by the provisional assessment order has come to an end expressly or impliedly – Thus, according to the terms and conditions of the sureties undertaken by the petitioners, they are not entitled to contend that their sureties stood discharged - This court does not find any infirmity in the recovery notice and the citation issued against assessees - Assessees are not entitled for any relief as prayed for in the writ petition - The writ petition is dismissed – Decided against assessees
|