Tax Bar Association And Anr. vs. The State Of Assam And 3 Ors.

Held

The Court acknowledged the petitioners' contention that the Assam Board of Revenue functions as a Tribunal under Section 4 of the Assam Value Added Tax Act, 2003, and that its Chairman should be a Judicial Member. The learned Advocate General for the State informed the Court that fresh advertisements would be issued for the constitution of the Board of Revenue, including the appointment of a Judicial Member, and that this process would be completed expeditiously, by 30.11.2022. The Court directed the State Government to issue an advertisement for the post of Chairman of the Board of Revenue by 15.09.2022 and to appoint the Judicial Member by 30.11.2022. The Court found the State's undertaking satisfactory and disposed of the writ petition with these directions. The issue of prohibiting administrative members was implicitly addressed by directing the appointment of a Judicial Member.

Facts

The petitioners, Tax Bar Association and its Secretary, filed a writ petition before the Gauhati High Court. They sought a writ of Mandamus and Prohibition directing the respondent authorities to appoint only judicial members with legal and judicial training to the Assam Board of Revenue for handling VAT and sales tax matters. They also prayed for a bench headed by a judicial member and for single-bench matters concerning VAT and sales tax to be placed before a judicial member. The petitioners contended that the Board of Revenue, constituted under the Assam Board of Revenue Act, 1962, functions as a Tribunal under Section 4 of the Assam Value Added Tax Act, 2003, and that the Chairman must be a Judicial Member with prescribed qualifications. They stated that the Tribunal was not functioning as of the petition's filing.

Key Issues

1. Whether the Assam Board of Revenue, when dealing with VAT and sales tax matters, functions as a Tribunal under Section 4 of the Assam Value Added Tax Act, 2003, requiring its Chairman to be a Judicial Member with specific qualifications? - Petitioner's argument: The Board of Revenue acts as a Tribunal under Section 4 of the Act of 2003, and its Chairman must possess judicial qualifications as stipulated. The current non-functioning of the Tribunal is detrimental to justice. - Revenue's argument: The State Government, through the learned Advocate General, stated that efforts were made to appoint a Chairman, but due to the requirement of appointing a Judicial Member, a fresh advertisement would be issued. The State also noted that with the advent of GST, very few matters under the Act of 2003 remain to be decided. The State committed to completing the appointment process expeditiously, latest by 30.11.2022. 2. Whether the respondent authorities should be prohibited from appointing administrative members to the Learned Assam Board of Revenue for VAT and sales tax related matters? - Petitioner's argument: The petitioners prayed for a writ prohibiting the appointment of administrative members to the Board of Revenue for these specific matters.