1976 (7) TMI 156 - HC - VAT and Sales Tax

Summary

Issues:
The judgment involves the jurisdiction of the Sales Tax Appellate Tribunal to interfere with the order of the assessing authority and the appealability of the order of the assessing authority declining to rectify an alleged error.

Jurisdiction of Sales Tax Appellate Tribunal:
The petition under section 38 of the Tamil Nadu General Sales Tax Act was filed against the Sales Tax Appellate Tribunal's order dated 3rd February, 1971, which allowed the appeal and rectified the error in the assessing authority's order. The main ground of contention was that no appeal lay against the assessing authority's order to the Appellate Assistant Commissioner, thus questioning the Tribunal's jurisdiction to interfere with the original order. The provision for rectification is governed by rule 5(9) of the Central Sales Tax (Madras) Rules, 1957, corresponding to section 55 of the Tamil Nadu General Sales Tax Act, 1959. The Tribunal's reliance on a previous court decision was disputed, emphasizing that the legal position must be ascertained based on the Act itself.

Appealability of Assessing Authority's Order:
Section 31 of the Act outlines the orders against which an appeal lies to the Appellate Assistant Commissioner, and an order under section 55 is not included in these appealable orders. The court clarified that an order by the assessing authority rectifying or refusing to rectify an error is not appealable to the Appellate Assistant Commissioner. Previous court decisions were examined to determine the appealability of such orders, highlighting the distinction between allowing an application for rectification and rejecting it. The addition of sub-section (4) to section 55 by Tamil Nadu Act No. 31 of 1972 further clarified that appeal and revision provisions apply only when an order of rectification is made, not when rectification is refused. Consequently, the Tribunal erred in holding that an appeal was maintainable to the Appellate Assistant Commissioner against the assessing authority's order rejecting the rectification application.

In conclusion, the revision petition was allowed, setting aside the Tribunal's order due to the error in the Tribunal's jurisdiction. No costs were awarded in this matter.