2009 (4) TMI 877 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment order passed under the Central Sales Tax Act, 1956 for the year 2005-06.
2. Demand notice issued without specification of payment date and reference to an unserved order.
3. Recovery of disputed tax amount before the conclusion of the appeal process.
4. Lack of breathing time given to the petitioner during the recovery process.
5. Directions to the appellate authority for a prompt disposal of the matter.

Analysis:
1. The petitioner, a registered dealer under the Bihar Value Added Tax Act, 2005 and the Central Sales Tax Act, 1956, challenged the assessment order for the year 2005-06. Initially, a writ petition was filed, but the court directed the petitioner to exhaust the statutory appeal process. The appeal was pending for hearing, and the petitioner had paid 25% of the demanded tax amount.

2. The petitioner raised concerns regarding a demand notice issued without specifying the payment date and referencing an order not served to them. The petitioner had to wait until February 2009 to receive a certified copy of the order mentioned in the demand notice. This discrepancy was highlighted in the writ petition.

3. The petitioner objected to the hurried recovery of the disputed tax amount before the appeal process concluded. The taxing authorities collected the amount without allowing the petitioner a breathing time, despite the appeal being pending. The court acknowledged the rushed collection and directed the appellate authority to ensure a prompt disposal of the matter on the next hearing date.

4. Emphasizing the lack of breathing time given to the petitioner during the recovery process, the court ordered that if the appellate authority adjourned the case without the appellant's request, the collected amount should be refunded immediately. The refund was contingent upon the outcome of the appeal. If the appeal succeeded, the amount recovered should be refunded within one month of the appeal's disposal.

5. The judgment concluded by disposing of the writ petition, directing the State counsel to ensure the timely transfer of files to the appellate authority for a prompt hearing and decision on April 28, 2009. The court's order aimed to address the procedural irregularities and ensure a fair resolution of the tax dispute in line with the legal provisions.