2008 (3) TMI 639 - HC - VAT and Sales Tax

Form 18 declaration - Held that - The State has rightly agitated the matter before the Tribunal. The Tribunal while disposing of the appeal and further remanding the matter to the assessing authority had made observations about the form 18 declaration which were unnecessary for the disposal of the appeal. We say so for the reason that when the assessing authority while reconsidering the claim of the assessee will be bound by the observations made by the Tribunal and he will not be in a position to apply his mind independently while reconsidering the matter. The revision petition is disposed of.The assessing authority will take form 18 declaration filed by the petitioner on record and pass fresh orders in accordance with law without being influenced by the observations made by the Tribunal insofar as the claim of the assessee for concessional rate of tax is concerned.

Summary

Issues:
Assessment based on form 18 declaration for concessional rate of tax.

Detailed Analysis:
The revision petition before the Kerala High Court challenged the Sales Tax Appellate Tribunal's order directing the assessing authority to pass a fresh order regarding the form 18 declaration produced by the assessee for claiming exemption in total and taxable turnover. The petitioner, a dealer under the Kerala General Sales Tax Act, had filed annual returns for the assessment year 2003-04. The assessing authority rejected the books of account and proposed determining the turnover based on best judgment due to the absence of relevant form 18 declarations for concessional tax rates.

The first appellate authority directed the assessing authority to accept the form 18 declarations produced during the appeal, leading to a second appeal by the State to the Tribunal. The Tribunal, after reviewing the form 18 declarations, directed the assessing authority to verify their genuineness and pass fresh orders. The petitioner, aggrieved by this decision, appealed to the High Court.

In the High Court's judgment, it was noted that the Tribunal's comments on the form 18 declarations were unnecessary and could unduly influence the assessing authority's reconsideration. The Court agreed with the State's contention that the Tribunal's observations were not essential for the appeal's resolution. Consequently, the High Court disposed of the revision petition and instructed the assessing authority to consider the form 18 declarations without being influenced by the Tribunal's remarks, ensuring an independent assessment of the concessional tax rate claim.

Therefore, the High Court's order emphasized that the assessing authority should base its fresh orders on the form 18 declarations provided by the petitioner, disregarding the Tribunal's unnecessary comments. This directive aimed to ensure a fair and unbiased assessment of the concessional tax rate claim without external influence, upholding the principles of independent judgment in tax assessments.