KAMAKHYA PLASTICS LTD Vs. STATE OF ASSAM

JUDGEMENT

(1.) JUDICIAL intervention in exercise of power under Article 226 of the Constitution of India has been sought for in the instant petition to annul the rectified assessments dated 06.03.2009 under Section 37(1) of the Assam General Sales Tax Act, 1993 (hereafter referred to as the Act, 1993) read with Section 109 of the Assam Value Added Tax Act, 2003 (hereafter referred to as the Act, 2003) as well as the clarification provided by the Commissioner of Taxes, Assam, to the notification dated 03.01.2003 issued under Section 9(3) of the Act 1993 as well as the order dated 24.09.2009/30.09.2009 of the said authority dismissing the revision petition filed by the present petitioner preferred against the aforementioned assessment. Consequential demands have also been impeached.

(2.) I have heard Dr. A.K. Saraf, Sr. Advocate, assisted by Mr. A. Goyal, Advocate for the petitioner and Mr. D. Saikia, learned Standing Counsel, Finance Department for the respondents.

(3.) THE assessment proceeding for the aforementioned period i.e. 2004-05 was completed under Section 17(4) of the Act 1993 on 14.02.2006. It was almost two years thereafter that pursuant to some audit objection, a show cause notice was issued to it by the Superintendent of Taxes, Unit A, Guwahati, requiring it to explain as to why the balance rate of tax (13.2% - 4.4%) i.e. 8.8% and the interest thereon would not be levied on the aforementioned turnover. This step was apparently on the comprehension that it had been wrongly allowed concessional rate of 4.4% on the turnover for the year 2004-2005 for the related supplies as the notification dated 03.01.2003 was intended to be in force for a period of three years w.e.f 01.05.2001. THE petitioner accordingly submitted a detailed reply contending in substance that the life of the notification was to be construed to be for a period of three years from the date of its issue i.e. 03.01.2003 and that the proposed additional levy @ 8.8% and interest was totally unwarranted. It also asserted to have made the supply of the PVC Pipes to the Government Departments at the assessed rate of 4.4% for which no objection at any stage was raised. According to the petitioner, neither the departmental authorities nor the dealers were under the impression that the notification would be effective from a date prior to that of its issuance i.e. 03.01.2003 or for that matter, that of its publication on 22.01.2003 in the Assam Gazette Extraordinary.