1968 (9) TMI 107 - HC - VAT and Sales Tax

Summary

Issues:
1. Jurisdiction of Deputy Commissioner under section 21 of the Mysore Sales Tax Act.
2. Scope of rectification by Deputy Commissioner in revisional jurisdiction.
3. Appeal to Sales Tax Appellate Tribunal from orders made by Deputy Commissioner under section 21.
4. Relief available to a dealer in revisional jurisdiction under section 21.

Analysis:

The judgment delivered by the High Court of Mysore addressed several key issues related to the assessment of turnover in respect of cotton yarn for a specific period under the Mysore Sales Tax Act. The Deputy Commissioner, exercising revisional jurisdiction under section 21, concluded that the turnover could not be taxed based on previous legal precedents and rulings. However, the Deputy Commissioner erred in restricting the rectification to periods before a certain date, which was clarified in the decision of Govindaraju Chetty v. Commercial Tax Officer. The Court emphasized that despite amendments, section 9(3) of the Central Sales Tax Act remains applicable.

The Sales Tax Tribunal initially refused to modify the Deputy Commissioner's order on the premise that an appeal under section 22 of the Mysore Sales Tax Act could not challenge the Deputy Commissioner's decision under section 21. The Court clarified that when revisional jurisdiction is exercised, the revising authority must rectify the assessment order to comply with statutory provisions. An appeal to the Sales Tax Appellate Tribunal is permissible if a party objects to the Deputy Commissioner's order and did not receive full relief entitled by law.

The Court highlighted that the relief granted in revisional jurisdiction is not a mere favor but serves the purpose of correcting erroneous orders. Therefore, any objection to the imperfect exercise of revisional jurisdiction can be the subject of an appeal under section 22. Consequently, the Court allowed the revision petition, directing the Commercial Tax Officer to modify the assessment order to exempt the petitioner from tax on cotton yarn sales for the specified period.

In conclusion, the Court's decision clarified the jurisdiction of the Deputy Commissioner, the scope of rectification in revisional jurisdiction, the right to appeal to the Sales Tax Appellate Tribunal, and the purpose of providing relief in revisional jurisdiction under section 21 of the Mysore Sales Tax Act. The judgment emphasized the importance of ensuring compliance with statutory provisions and correcting erroneous assessments to uphold the rights of dealers under the law.