Hindustan Construction Co. Limited Vs State of West Bengal & Ors. (Calcutta High Court)
The petitioner is undertaking works contracts. It was registered under the West Bengal Value Added Tax Act. For assessment year 2015-2016; best judgment assessment order came to be passed. The petitioner filed an application before the West Bengal Sales Tax Tribunal under section 18; inter alia; challenging the validity of amendment to section 84 read with rule 138 of the Rules. The Tribunal; while upholding the validity of the amendment; relegated the petitioner to pursue appellate remedy. This order of the Tribunal was challenged in writ petition.
The Hon’ble Calcutta High Court set aside the order impugned and allowed the writ petition. It held: (i) though the Advocate before the Tribunal had agreed to file appeal before appellate authority; there was no written concession given by the petitioner; (ii) even if a concession is given; unless it is unequivocal; it will not bind the party; (iii) the challenge to validity of section 84 being upheld by Division Bench of the High court is not pressed; (iv) the asesssing authority could not have passed a best judgment order when a draft assessment order was prepared and petitioner had filed its submissions; (v) there is no basis or reasoning given for addition of 40% to the contract price and it is a high pitched assessment; (vi) the assessing officer has not appreciated that every assessment year is a different assessment unit and hence, different stands could be taken; (vii) remands the matter back to the assessing officer to pass fresh orders after hearing the petitioner; (viii) directs petitioner to file reply treating the assessment order as show cause notice.
