ABNASH CHANDER Vs. ASSESSING AUTHORITY, BHATINDA

JUDGEMENT

(1.) The petitioners were assessed to sales-tax for the year 1962-63 and ordered to pay an additional amount of Rs. 22000/- along with a penalty of Rs. 7000/- by the Assessing Authority. The appeal filed by him was accepted by the Presiding Officer of the Sales Tax Tribunal, Punjab, vide his order dated March 19, 1969, Annexure 'A' to the petition. The learned Tribunal set aside the order of the Assessing Authority and remanded the case for a fresh decision after remitting the penalty. In short, after the assessment order had been set aside, the petitioners were entitled to get a refund of Rs. 29000/-.

(2.) For the year 1964-65, a tax demand of Rs. 31432.28 was created against the petitioners. The petitioners wrote to the Department that they should be given the credit of Rs. 29000/- which they were entitled to get back in respect of the assessment year 1962-63 and that their case for that year may be finalised at an early date. In the return filed on behalf of the respondents, it has been submitted that there is no law for claiming the adjustment of the amount and the petitioners were advised to make payment of Rs. 31432.28 and to seek refund of Rs. 29000/- standing in their account. The grievance of the petitioners is that coercive process for the realisation of tax for the year 1964-65 may not be used against them till the finalization of their case for the assessment year 1962-63.

(3.) There appears to be prima facie merit in the submission made by the learned counsel for the petitioners. If the order of assessment for the year 1962-63 had been quashed, then the additional liability created by the Assessing Authority for that year was also wiped out and the petitioners were entitled to get a refund of Rs. 29000/-. It is not necessary that there should be an express provision for the adjustment of the amount standing in the account of the assessee against another tax demand. Such an adjustment can be ordered by the Assessing Authority as a part of the inherent jurisdiction vesting in the quasi-judicial authorities. It also appears unfair that though the case for 1962-63 was remanded by the Sales Tax Tribunal on March 19, 1969, the matter has not been finalised by the Assessing Authority till today. The petitioners undertake to deposit the sum of Rs. 2432.28 within one month from today. The Assessing Authority shall decide the 1962-63 case of the petitioners within three months from the date when they make this deposit. Till such time as that case is not finally decided by the Assessing Authority, the petitioners will not be arrested in execution of any warrant of arrest for the recovery of sales-tax for the years 1962-63 and 1964-65.