COMMERCIAL ENTERPRISERS Vs. STATE OF ORISSA

JUDGEMENT

(1.) RAMESWAR Das Bajaj was a dealer registered under the Orissa Sales Tax Act, 1947 (hereinafter referred to as "the Act"), to carry on business of sale and purchase of goods in the trade name of M/s. Commercial Enterprises. In the month of December, 1973, Rameswar Das died leaving behind Sankarlal, his son to continue the business. In respect of the years 1971-72, the Sales Tax Officer initiated a proceeding under section 12 (8) of the Act. In respect of the years 1972-73 and 1973-74, regular assessments were made under section 12 (4) of the Act. As required under section 12 (2) (a) of the Act, notices were required to be served on the dealer. By the time the notices were issued, Rameswar Das had already expired in December, 1973. The Tribunal set aside the orders of assessment and directed the Sales Tax Officer to assess afresh. Grievance of Sankarlal is that assessment proceeding ought to have been annulled. Since the Tribunal refused to state a case, this Court called upon the Tribunal to state a case on the following question of law in respect of all the three years :

(2.) ANNULMENT of an assessment is permissible where the taxing authority would have no jurisdiction to assess. In all other cases, where three is jurisdiction to assess, the assessment order may be set aside if there is any error, which requires further enquiry to be conducted by the appellate authority.

(3.) ON perusal of the orders in second appeals, we are satisfied that facts material for the purpose of decision for considering the validity of assessments having not been considered by the Tribunal, orders are vitiated.