Back
High Court Of Rajasthan
Judgename : ARUN MADAN
STATE OF RAJASTHAN - Appellant
Versus
JAIPUR HOSIERY MILLS (PVT.) LTD. - Respondent
C. S. A. 47 Of 1983
Decided On : 03/07/1996
SALES TAX - Assessment - Validity - Hosiery products - Exemption - Notification - Interpretation - Jurisdiction of Civil Court - Bar of suit - Rajasthan Sales Tax Act, 1954 (Rajasthan Act 29 of 1954), Secs. 12, 13, 14(2), 14(4-A), 15, 19 - Rajasthan High Court Rules, 1952, Rule 132 - Code of Civil Procedure, 1908 (Central Act 5 of 1908), Order 3, Rule 1, Order 27, Rules 1, 2, 8, Order 41, Rule 1.
Fact of the Case:
The respondent, M/s. Jaipur Hosiery Mills Pvt. Ltd., was assessed to Sales Tax by the Commercial Tax Officer, Special Circle-II, Jaipur (C.T.O.) for the years 1963-64 to 1967-68. The respondent did not challenge the assessment orders passed by the C.T.O. in appeal or revision nor did it take any appropriate proceedings within the Rajasthan Sales Tax Act but instead filed a regular suit in the Court of Civil Judge, Jaipur, City, Jaipur challenging the legality of the assessments orders on various grounds.
Finding of the Court:
1. The suit filed by the respondent challenging the assessment orders passed by the C.T.O. was not maintainable as it was barred by Section 19 of the Rajasthan Sales Tax Act, 1954, which specifically bars the jurisdiction of Civil Court to entertain such suits.2. The assessment orders passed by the C.T.O. were valid and in accordance with the provisions of the Rajasthan Sales Tax Act, 1954.3. The hosiery products manufactured by the respondent were not exempt from taxation under the Notification dated 26th March, 1962, as they were not specifically mentioned in the said Notification.4. The Civil Court had no jurisdiction to entertain the suit filed by the respondent as the Rajasthan Sales Tax Act, 1954 provides a complete machinery for determination of all the questions relating to the liability, assessment etc. and Section 19 of the Act specifically bars the jurisdiction of Civil Court to entertain such suits.
Issues: 1. Whether a suit to question the assessments made under the Rajasthan Sales Tax Act, 1954 and the rules framed thereunder of plaintiff-respondent in respect of accounting years 1963-64 to 1967-68 was competent despite express bar to such proceedings contained in Section 19 of the Act and the existence or adequate remedy provided in the Act in the form of appeal (Section 13), revision (Section 14 (2) special appeal (Section 14 (4-A) and reference (Section 15) and whether the Civil Court had jurisdiction to entertain such suit ?2. Whether Section 12 of the Act applies in a case where the appellate authority (Deputy Commissioner Appeals) sets aside the assessment made under Section 10 and remands the case to the assessing authority to pass a fresh order after considering the matter in the light of the observations of the Supreme Court ?3. Whether the demand notices mistakenly issued without passing a fresh assessment order in the remanded proceedings and such notices also being unaccompanied by assessment order as required by Rule 31, and which had beep issued as per the demand created by the original assessment orders set aside by the appellant authority (Dy. Commissioner, Appeals) had the effect of debarring the assessing authority from finalising the remand proceedings and from passing assessment orders afresh as directed by the appellate authority ?4. Whether the exemption certificate the obtaining of which was only a condition for availing exemption under notification dated 26th March, 1962 which excluded hosiery produce and hats of all kinds from its ambit and which did not specify different varieties of garments hosiery or otherwise had the effect of granting exemption to banians, chaddies etc, manufactured by the plaintiff-respondent even though they were not covered by the notification merely on the ground that the plaintiff-appellant had sought exemption to garments the value of which does not exceed Rs. 4/- in single piece and had mentioned different varieties of garments-banians, chaddies etc. in this application ?5. Whether banians and chaddies etc. manufactured by the plaintiff-respondent have knitted fabrics or hosiery cloth are hosiery products within the meaning of notification No. F. 5 (99) B and T / 60 (fated 26th March, 1962 ?
Ratio Decidendi: 1. The jurisdiction of the Civil Court to entertain suits challenging assessment orders passed under the Rajasthan Sales Tax Act, 1954 is barred by Section 19 of the Act.2. The assessment orders passed by the C.T.O. were valid and in accordance with the provisions of the Rajasthan Sales Tax Act, 1954.3. The hosiery products manufactured by the respondent were not exempt from taxation under the Notification dated 26th March, 1962, as they were not specifically mentioned in the said Notification.
Final Decision: The appeal filed by the appellants was dismissed as it was barred by limitation and the delay of 47 days had not been explained by the appellants. The appeal was also not presented by a competent or a duly authorised person and the retrospective sanction which was obtained much later to the filing of this appeal, cannot cure the defect which was inherent in this appeal as on the date of its presentation.
ARUN MADAN, J.
( 1 ) THIS second appeal has been preferred by the appellants against the judgment and decree dated 12th January, 1982 passed by Additional Distt. Judge No. 2, Jaipur City, Jaipur, in Civil Appeal No. 211 of 1977 whereby he partially confirmed the decree dated 3-5-1977 passed by Additional Civil Judge, Jaipur City, Jaipur in Civil Suit No. 46/1976 for declaration, injunction and damages.
( 2 ) FACTS giving rise to the filing of this appeal, briefly stated, are that plaintiffrespondent No. 1 M/s. Jaipur Hosiery Mills Pvt. Ltd. was assessed to Sales Tax by the Commercial Tax Officer, Special Circle-II, Jaipur (for short C. T. O. ). The assessment orders for the years 1963-64 to 1967-68 were passed on 5-9-1972 vide Exs. 41 to 45 on the record. The respondent did not challenge the assessment orders passed by the C. T. O. in appeal or revision nor it took any appropriate proceedings within the Rajasthan Sales Tax Act but instead filed a regular suit in the Court of Civil Judge, Jaipur, City, Jaipur challenging the legality of the assessments orders on various grounds. The grievance of the respondent was that the assessment orders have been passed in violation of provisions of Sales Tax Act and in defiance of stay order passed by a higher tax Authority. The respondent also alleged that since he was not a hosier, the order of C. T. O. to the effect that he was a hosier, was illegal and further no assessment proceedings could be initiated and finalised against the respondent. The total tax liability of the respondent as revealed from the assessment orders which were challenged in the suit before learned Civil Judge, was Rs. 1,28,537/- which the respondent alleged as void and illegal and sought stay of the recovery from the Civil Court. The respondent claimed a sum of Rs. 5000/- on account of damages.
( 3 ) THE above suit was contested before the trial Court by the appellant State defendant mainly on the ground that the assessment orders were passed in a perfect legal manner and in bona fide exercise of the powers under the Rajasthan Sales Tax Act by the Assessing Authority. The State of Rajasthan disputed the jurisdiction of the Civil Court to entertain the aforesaid suit as the Rajasthan Sales Tax Act provides a complete machinery for, determination of all the questions relating to the liability, assessment etc. and Section 19 of the Rajasthan Sales Tax Act (for short the "act") specifically bars the jurisdiction of Civil Court to entertain such suits. The suit was also contested on the ground that no notice under Section 80, C. P. C. was served on the appellants prior to the filing of the suit and hence the relief of declaration against the assessment orders was not tenable for want of valid notice.
( 4 ) ON the pleadings of the parties, learned trial Court framed the following issues :-1. Whether the plaintiff is not hosier and its main business on and after 1961, has been to manufacture knitted cloth and tailor knitted cloth into garments like Baniyan, Sweaters, Shirts and Jersees etc. ? P. 2. Whether the plaintiff is not liable for Sales Tax in dispute because of exemption certificate dated 12-11-1962 and its subsequent renewals from 1963 to 1968 ? P. 3. Whether the plaintiff is not liable to pay the Sales Tax in dispute under the provision of Section 12 of the Rajasthan Sales Tax Act ? P. 4. Whether the assessment orders dated 59-1975 are nullity and inoperative in law ? P. 5. Whether the orders dated 5-9-1972 are mala fide on the part of defendant No. 2 and what is its effect on the suit ? P. 6. Whether the tax imposed on the plaintiff in pursuance of the orders dated 28-10-1970 or 5-9-1972 is in violation of Art. 276 of the Constitution of India ? P. 7. Whether the plaintiff is entitled to the damages as claimed in the suit ? P. 8. Whether the notice given by the plaintiff under Section 80, C. P. C. is invalid in eye of law ? P. 9. Whether this Court has got no jurisdiction to prohibit the defendants
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
