1979 (7) TMI 233 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of turnover from jewellery under Sales Tax Act.
2. Appeal regarding the rate of levy of tax under section 5A of the Act.
3. Scope of appellate powers of the Tribunal under section 39 of the Act.

Analysis:

1. The case involved the assessment of turnover from jewellery purchased by the assessee and converted into gold under the Sales Tax Act. The Sales Tax Officer and the Appellate Assistant Commissioner had assessed the turnover at 3½ per cent under section 5 of the Act. The Sales Tax Appellate Tribunal concurred with the Appellate Assistant Commissioner's decision regarding the percentage of addition to the turnover. The Tribunal treated the gold in question as "bullion and specie" under entry 56 of the First Schedule of the Act and assessed it at a lower rate of 1 per cent, contrary to the initial assessment. The Tribunal allowed the assessee to raise an additional ground regarding the rate of levy under section 5A of the Act.

2. The assessee contended that by the operation of section 5A, he should be assessed under section 5(2) of the Act. The Tribunal, after allowing the additional ground, upheld the assessee's argument and assessed the gold at the lower rate of 1 per cent. The revision-petitioner objected to the Tribunal allowing the assessee to raise the point regarding the rate of tax under section 5A at the second appeal stage, arguing it was beyond the scope of the Tribunal's appellate powers under section 39 of the Act. However, the Tribunal's decision was justified under the wide and comprehensive powers granted to it under section 39(4)(a)(iii) to pass "such orders as it may think fit."

3. The Tribunal's decision to allow the assessee to raise the ground regarding the rate of levy and to accept the case of the assessee on this aspect was upheld by the Court. The Court examined the prescribed forms for appeal under the Act and concluded that they did not limit the provisions regarding the scope of appeal or the power of the Tribunal in dealing with the appeal. It was held that the Tribunal did not exceed its jurisdiction or misdirect itself in allowing the question regarding the rate of tax to be raised and in accepting the case of the assessee. The revision was dismissed with no order as to costs.

In conclusion, the Court upheld the Tribunal's decision to assess the turnover from jewellery at a lower rate under section 5A of the Act and found that the Tribunal did not exceed its jurisdiction in allowing the additional ground to be raised during the appeal process.