COMMISSIONER OF SALES TAX Vs. SAM ENTERPRISES

JUDGEMENT

(1.) IN this case the Financial Commissioner has referred the following questions to the court : 1. Whether, on the facts and in the circumstances of the case, the Financial Commissioner was justified in holding that the factum of actual dissolution or otherwise cannot be gone into by the sales tax authorities when once the intimation of dissolution is received and that the assessing authority stands functus officio in the matter of framing assessment after receipt of such intimation ? 2. Whether, on the facts and in the circumstances of the case, the learned Financial Commissioner was justified in accepting the revision petitions and in quashing the assessments made against the firm in respect of the years 1967-68, 1968-69 and 1969-70 ? 3. Whether, the learned Financial Commissioner was justified in holding that there was no question of payment of admitted tax once the firm stood dissolved ? 4. Whether, the payment of admitted tax is a condition precedent to the assumption of jurisdiction by the appellate and revisional authorities ? 5. Whether the finding of the learned Financial Commissioner that the firm stood dissolved before the order of assessment, was based on evidence on record ?

(2.) IN respect of the assessment years 1967-68, 1968-69 and 1969-70 three separate orders were passed on 28th of December, 1971. Appeals against the same were filed but the Assistant Commissioner dismissed the same on the ground of non-payment of admitted tax. The respondents then filed a revision petition but the Deputy Commissioner of Sales Tax dismissed the same on 28th of January, 1974. A second revision petition was filed to the Financial Commissioner which was allowed by the order dated 14th of October, 1974. While relying upon the decision of a single Bench of this Court reported as Ranjit Singh v. Assessing Authority [1972] 29 STC 499 (Delhi) the Financial Commissioner held that once intimation had been sent about the dissolution of the firm then no action could be taken to assess the same and, therefore, the question of paying the admitted tax did not arise.