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1990 Supreme(SC) 736
SUPREME COURT OF INDIA
Ranganath Misra, CJI., A.M. Ahmadi, M.N. Venkatachaliah, JJ.
PRESIDENCY KID LEATHER (P) LTD.
Versus
COMMERCIAL TAX OFFICER, BALLYGANGE CHARGE, CALCUTTA, OTHERS.
Civil Appeal No. 5526 of 1990. Appeal by special leave from the judgment, order dated June 28, 1989, of the West Bengal Taxation Tribunal in RN No. 2 of 1989. The judgment is reported as Presidency Kid Leather (Pvt.) Ltd. v. Commercial Tax Officer [1991] 80 STC 338
Decided On: Decided On, 20-11-1990
Ms. Hemantika Wahi and Manoj Arora, Advocates, for the appellant.
N. S. Hegde, Senior Advocate (D. N. Mukherjee, D. K. Sinha and J. R. Das, Advocates, with him), for the respondents.
When tax assessments for multiple years are challenged on common grounds, the benefit of remand granted for some years should be extended to others to avoid prejudice and ensure consistency in adjudication.
Headnote:(A) Bengal Finance (Sales Tax) Act, 1941 - Assessment of sales tax - Remand of matters - Consistency in treatment of multiple assessment years - Where assessments for multiple years are challenged on common grounds and some years have been remanded, it would be prejudicial to the assessee to deny the benefit of remand for another year based on the same grounds.
Facts of the case:
The assessee challenged sales tax assessments for three consecutive years. While the assessments for the first and third years were remanded, the assessment for the middle year remained. Since the challenges for all three years were based on common grounds, the assessee sought similar treatment for the middle year.
Findings of Court:
The court found that denying the benefit of remand for the middle year would be prejudicial to the assessee, given that the other two years were already remanded on common grounds.
Issues: Whether the assessment for a specific year should be vacated and remanded when assessments for other years, challenged on identical grounds, have already been remanded.
Ratio Decidendi: To avoid prejudice and ensure consistency, when assessments for multiple years are challenged on common grounds, the benefit of remand granted for some years should be extended to others.
Result: Impugned assessment and appellate orders vacated and matter remitted to be dealt with along with connected years, subject to the deposit of tax in dispute for the specific year.
Legal Category Hierarchy
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tax law
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sales tax
- assessment and remand
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sales tax
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practice and procedure
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appellate procedure
- remand of matter
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appellate procedure
ORDER
Special leave granted.
Heard counsel for the parties.
Assessee was subject to sales tax under the Bengal Finance (Sales Tax) Act, 1941, for the periods 1977-78, 1978-79 and 1979-80. The assessments for all the three years were challenged but there has been an order of remand in respect of the first and the last of these years leaving 1978-79 out of the purview of remand.
We find that the challenge is on common grounds and in case assessee's stand succeeded for the other two years where remand operates there will be prejudice to the assessee in denying it the benefit of the decision in respect of the other two years in respect of the year 1978-79. Assessee has agreed before us to deposit the tax in dispute for the year 1978-79 within four weeks before the appropriate authority and counsel for the respondents has agreed before us that the assessment for the year 1978-79 may also be vacated and the matter remanded and questions raised by the assessee against the assessments for all the three years may be considered on remand.
In that view of the matter we vacate the impugned assessment and appellate orders and remit the matter to be dealt along with the connected years. In case assessee does not satisfy the direction for payment of the tax for the year 1978-79, as directed, the order already made shall stand and our order would not be given effect to.
The appeal is disposed of accordingly.
