1964 Supreme(P&H) 189

PUNJAB & HARYANA HIGH COURT
I.D.Dua and D.K.Mahajan JJ.
Kishan Chand And Co.
Versus
S.K.Jain
Civil Writ No. 382 of 1964,
Decided On : NOVEMBER 17, 1964

The power of transfer of pending assessment proceedings from one appropriate Assessing Authority to another is inherent and implicit in the Excise and Taxation Commissioner.

Headnote:

PUNJAB GENERAL SALES TAX ACT - ASSESSMENT - TRANSFER OF PENDING PROCEEDINGS - JURISDICTION - RULES - NATURAL JUSTICE - ARTICLE 14 OF THE CONSTITUTION - Held, that the power of transfer of pending assessment proceedings from one appropriate Assessing Authority to another is inherent and implicit in the Excise and Taxation Commissioner, who is the final controlling Authority and is empowered to superintend the administration and the collection of tax leviable under the Act. This power of superintendence is expressly conferred by Rule 69. The exercise of this discretionary power is sufficiently guided and controlled by the statutory purpose to be achieved by the statute, viz., the convenient and efficient assessment and collection of the tax, of course consistent with the reasonable convenience of the particular dealer. Its abuse and misuse in a given case can be set right at the instance of the aggrieved party in appropriate proceedings, but the discretion can by no means be held to be violative of Article 14 of the Constitution.

Fact of the Case:

The petitioner, a partnership firm, carrying on the business of sale and purchase of Banaspati oils, filed monthly returns and paid the tax due under Section 10 of the Punjab General Sales Tax Act (the Act) for the years 1961-62 and 1962-63. In February 1964, the petitioner received two notices for the year ending 31st March 1962 (one under the Act and the other under the Central Sales Tax Act) and two similar notices for the year ending 31st March 1963. These notices were issued by the Assessing Authority, Punjab, Chandigarh, requiring the petitioner to appear before it on 3rd March 1964. The petitioner challenged the notices on the ground that the assessment proceedings having commenced before the Assessing Authority, Amritsar, there was no law providing for transfer of pending assessment proceedings to another Assessing Authority.

Finding of the Court:

The Court held that the power of transfer of pending assessment proceedings from one appropriate Assessing Authority to another is inherent and implicit in the Excise and Taxation Commissioner, who is the final controlling Authority and is empowered to superintend the administration and the collection of tax leviable under the Act. This power of superintendence is expressly conferred by Rule 69. The exercise of this discretionary power is sufficiently guided and controlled by the statutory purpose to be achieved by the statute, viz., the convenient and efficient assessment and collection of the tax, of course consistent with the reasonable convenience of the particular dealer. Its abuse and misuse in a given case can be set right at the instance of the aggrieved party in appropriate proceedings, but the discretion can by no means be held to be violative of Article 14 of the Constitution.

Issues: Whether the power of transfer of pending assessment proceedings from one appropriate Assessing Authority to another is inherent and implicit in the Excise and Taxation Commissioner?

Ratio Decidendi: The Court held that the power of transfer of pending assessment proceedings from one appropriate Assessing Authority to another is inherent and implicit in the Excise and Taxation Commissioner, who is the final controlling Authority and is empowered to superintend the administration and the collection of tax leviable under the Act. This power of superintendence is expressly conferred by Rule 69. The exercise of this discretionary power is sufficiently guided and controlled by the statutory purpose to be achieved by the statute, viz., the convenient and efficient assessment and collection of the tax, of course consistent with the reasonable convenience of the particular dealer. Its abuse and misuse in a given case can be set right at the instance of the aggrieved party in appropriate proceedings, but the discretion can by no means be held to be violative of Article 14 of the Constitution.

Final Decision: The Court allowed the writ petitions and quashed the impugned notices issued by the Assessing Authority, Chandigarh. The Court also held that it would be open to the Commissioner to pass a proper order of transfer in accordance with law and in the light of the observations made by the Court.