1975 (10) TMI 89 - HC - VAT and Sales Tax

Issues Involved:
1. Jurisdiction of the Commissioner of Sales Tax to revise an appellate order under section 39(2) of the Madhya Pradesh General Sales Tax Act, 1958.
2. Computation of the limitation period for issuing a notice under section 39(2) of the Act.

Detailed Analysis:

1. Jurisdiction of the Commissioner of Sales Tax to Revise an Appellate Order under Section 39(2) of the Madhya Pradesh General Sales Tax Act, 1958:

The petitioner, a limited company, challenged the notice dated 23rd August 1969 and the order dated 18th April 1972 issued by the Commissioner of Sales Tax. The primary contention was that the Commissioner had no power to revise an appellate order of the Deputy Commissioner of Sales Tax under section 39(2) of the Madhya Pradesh General Sales Tax Act, 1958.

The court examined the petitioner's reliance on a previous judgment, *Commissioner of Sales Tax, M.P., Indore v. Amarjeet Singh [1963] 14 S.T.C. 501*, where it was held that the Commissioner could not revise an appellate order of the Deputy Commissioner under section 22-B of the C.P. and Berar Sales Tax Act, 1947. The reasoning was that an appellate authority could not be considered an authority appointed to assist the Commissioner.

However, the court distinguished the present case by noting the differences in the wording of section 3 of the M.P. General Sales Tax Act, 1958, which explicitly includes appellate authorities as those appointed to assist the Commissioner. Section 3 of the M.P. General Sales Tax Act, 1958, lists various officers, including the Deputy Commissioner of Sales Tax, as authorities appointed to assist the Commissioner.

The court also referred to a Bombay High Court decision in *H. B. Munshi, Commissioner of Sales Tax, Bombay v. Oriental Rubber Industries Pvt. Ltd. [1974] 34 S.T.C. 113*, which supported the view that the Commissioner could revise orders passed by authorities appointed to assist him, even if those authorities exercised appellate powers independently.

Based on the altered provisions in the M.P. General Sales Tax Act, 1958, the court concluded that the Commissioner had the power to revise the first appellate order of the Deputy Commissioner of Sales Tax under section 39(2) of the Act. Thus, the impugned notice and order did not warrant interference.

2. Computation of the Limitation Period for Issuing a Notice under Section 39(2) of the Act:

The petitioner argued that the notice dated 23rd August 1969 was time-barred as it was served on 6th September 1969, beyond the three-year limitation period from the date of the Deputy Commissioner's order dated 25th August 1966.

The court clarified that the limitation period of three years provided by the proviso to sub-section (2) of section 39 of the Act should be computed from the date of issuance of the notice, not from the date of service. This interpretation was consistent with the court's earlier decision in *R.M.E. Works, Raipur v. Commissioner of Sales Tax, M.P. M.C.C. No. 346 of 1973*.

Since the notice was issued on 23rd August 1969, within three years of the Deputy Commissioner's order dated 25th August 1966, the court held that the notice was within the limitation period, and the question of limitation did not arise.

Conclusion:

The petition was dismissed as the court found that the Commissioner of Sales Tax had the jurisdiction to revise the appellate order of the Deputy Commissioner under section 39(2) of the M.P. General Sales Tax Act, 1958. Additionally, the notice dated 23rd August 1969 was within the prescribed limitation period. There was no order as to costs, and the security deposit was directed to be refunded to the petitioner.

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