OM PRAKASH Vs. STATE OF HARYANA

JUDGEMENT

(1.) THIS petition involves a challenge to the assessment proceedings initiated by the sales tax authorities against M/s. Shri Surya Complex. The demand notice issued by the Assistant Excise and Taxation Officer-cum-Assessing Authority, Karnal, and the order dated May 27, 1994 passed by the Joint Excise and Taxation Commissioner (Appeals), Ambala, dismissing the appeal filed by the petitioners under section 39 of the Haryana General Sales Tax Act, 1973 (for short "the Act of 1973"), have been challenged in this petition.

(2.) ONE Shri P. Manavalan started business at Karnal in the name and style of M/s. Siri Surya Complex, which was granted registration under the Act. The petitioners stood surety for M/s. Siri Surya Complex and gave bonds worth Rs. 50,000 to be submitted before the Sales Tax Department. According to petitioner No. 1 when he came to know that the business of M/s. Siri Surya Complex was not fair, he submitted an application before the Excise and Taxation Officer, Karnal, for withdrawing the surety. Thereupon, respondent No. 2 directed M/s. Siri Surya Complex to submit a bank guarantee of Rs. 1. 50 lacs. Instead of furnishing a bank guarantee of Rs. 1. 50 lacks, M/s. Siri Surya Complex furnished a bank guarantee of Rs. 50,000, which was accepted by the department. Subsequently, assessment proceedings were initiated against M/s. Siri Surya Complex. Notice of assessment was issued but as the assessee did not appear before the competent officer, ex parte and best judgment assessment was made by the said officer and a demand of Rs. 84,950 was raised against the assessee. Petitioners separately filed two appeals before the Joint Excise and Taxation Commissioner (Appeals), Ambala, because they were being threatened with recovery of the amount of tax because the departmental authorities could not trace out the dealer. These appeals have been dismissed by the appellate authority on the ground that such appeals are not maintainable.

(3.) RULE 55 of the Haryana General Sales Tax Rules, 1975, prescribes the forms for appeal. Rule 59 prescribes the form for application for review. Relevant extracts of form S. T. 47 and form S. T. 49 are also reproduced below :