1967 (7) TMI 121 - HC - VAT and Sales Tax

Summary

Issues:
1. Jurisdiction of the Assessment Commercial Tax Officer under the Madras General Sales Tax Act, 1959.
2. Interpretation of the proviso to sub-section (1) of section 61 of the Act.
3. Impact of subsequent legislation - Madras Act 10 of 1963.

Jurisdiction of the Assessment Commercial Tax Officer:
The case involved an assessment order made under the Madras General Sales Tax Act, 1939, which was revised by the appellate authority in 1958. Subsequently, in 1962, the Assessment Commercial Tax Officer sought to enhance the turnover as having escaped assessment under the Madras General Sales Tax Act, 1959. The Tribunal held that the officer's order was passed without jurisdiction. The Court agreed with the Tribunal's decision, emphasizing that under the old Act, the power to tax escaped turnover was vested in the appellate authority and not the original authority. The proviso to section 61(1) of the Act preserved rights and liabilities acquired under the old Act, indicating that the Commercial Tax Officer lacked jurisdiction to make the order.

Interpretation of the Proviso to Section 61:
The Court analyzed the proviso to section 61(1) of the Act, which stated that the repeal of the old Act would not affect previous operations, rights, titles, obligations, or liabilities acquired under the old Act. The Court referred to a similar provision discussed in a Supreme Court case, emphasizing that the right or liability acquired by the assessee should be determined as per the provisions of the old Act. The Court concluded that the proviso did not permit the application of section 16 of the new Act, which vested the power to tax escaped assessment in the original authority, even in cases where the order was revised by the appellate authority.

Impact of Subsequent Legislation - Madras Act 10 of 1963:
The judgment addressed the impact of Madras Act 10 of 1963, which came into force with retrospective effect. The Court determined that this Act did not alter the situation, as it directed that any rights acquired or liabilities incurred under previous legislation should be viewed as if the Amending Act had not been passed. Therefore, the Assessment Commercial Tax Officer had no jurisdiction to pass the order enhancing the turnover, even in light of the subsequent legislation.

In conclusion, the Court dismissed the petition, upholding the Tribunal's decision that the Assessment Commercial Tax Officer lacked jurisdiction to enhance the turnover as having escaped assessment under the Madras General Sales Tax Act, 1959.