Commissioner of Commercial Tax & Ors. Vs Vikaram Cement (Supreme Court of India)
The appeals challenged the judgment dated 01.09.2010 of the Full Bench of the Madhya Pradesh High Court, which had set aside reassessment proceedings initiated under Section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958 as barred by limitation. The respondent-assessee, registered under the Act, was originally assessed for the period 01.04.1987 to 31.03.1988. An additional demand of Rs. 41,062/- was raised on 19.03.1991. On appeal, the Appellate Authority, by order dated 20.05.1992, set aside the assessment on the ground of violation of principles of natural justice and remanded the matter for fresh assessment after allowing submission of Form B-2 and other declarations. A fresh assessment was passed on 26.10.1994.
Subsequently, on 26.03.1997, reassessment proceedings were initiated under Section 19(1), culminating in an order dated 26.12.1998 raising liability of Rs. 25,47,448/-. The assessee’s appeal and revision challenging the reassessment as time-barred were dismissed. However, the High Court allowed the writ petition, holding that the reassessment notice was barred by limitation since the original assessment did not completely merge with the appellate order, which was limited in scope.
Before the Supreme Court, it was noted that the tax component involved was Rs. 25,47,448/-, below the monetary limit of Rs. 2 crore prescribed for filing or pursuing appeals before the Supreme Court under the Circular dated 26.06.2024 issued by the Government of India, Ministry of Finance, Central Board of Indirect Taxes and Customs (CBIC). The Circular, based on recommendations of the GST Council and powers under Section 120 read with Section 168 of the CGST Act, fixed monetary limits for non-filing of appeals, including Rs. 2 crore for the Supreme Court. It clarified that where disputes pertain to demand of tax, the aggregate tax amount alone is relevant for applying the limit, and that appeals should not be pursued if below the threshold.
