1961 (7) TMI 56 - HC - VAT and Sales Tax

Summary

Issues:
1. Limitation applicable to revisions entertained by the Commissioner of Commercial Taxes under section 15 of the Hyderabad General Sales Tax Act read with rule 30 of the Hyderabad General Sales Tax Rules, 1950.

Detailed Analysis:
The judgment delivered by the High Court of Andhra Pradesh involved two appeals by Singareni Collieries Co., Ltd., concerning the limitation applicable to revisions entertained by the Commissioner of Commercial Taxes under section 15 of the Hyderabad General Sales Tax Act read with rule 30 of the Hyderabad General Sales Tax Rules, 1950. The appeals related to the assessment years 1954-55 and 1955-56, where the assessee claimed exemption on turnovers representing sales of inter-State character. The Commercial Tax Officer initially allowed these exemptions, but the Commissioner of Commercial Taxes later revised the assessments by disallowing the exemptions, based on a previous court decision and the view that the turnovers were of intra-State nature and not inter-State. The main contention raised was whether the revisional jurisdiction could be exercised by the Commissioner beyond three years of the assessment year. The appellant argued that the phrase "at any time" in section 15(2) should be equated to three years to align with legislative intent, citing rule 32 of the Hyderabad General Sales Tax Rules, 1950.

The appellant's counsel argued that a period of limitation should be read into the provision based on rule 32, which prescribes a three-year period for taking action on escaped assessments or assessments at too low a rate. However, the court rejected this argument, stating that the phrase "at any time" in section 15(2) denotes an indefinite period and does not imply a specific time limit. The court emphasized that rule 32 pertains to making additional assessments and is not directly linked to the revisional jurisdiction of the Commissioner. The court also highlighted that the rule was framed after the enactment of section 15, and therefore, could not have influenced the legislative intent regarding the revisional powers of the Commissioner.

Furthermore, the court dismissed the argument that the period of limitation prescribed in the Andhra Pradesh General Sales Tax Act, 1957, should apply, as the assessments were made under the Hyderabad General Sales Tax Act. The court concluded that the arguments put forth by the appellant lacked substance and ruled in favor of dismissing the appeals with costs. Additionally, a writ petition filed as an alternative remedy was also dismissed without costs.