1979 (11) TMI 254 - HC - VAT and Sales Tax

Summary

Issues:
Assessability of turnover under section 7-A
Revision of orders dated 27th November, 1970, and 20th March, 1971 by the Board of Revenue

Assessability of turnover under section 7-A:
The appeal involved the assessability of a turnover of Rs. 30,637.50 under section 7-A of the Tamil Nadu General Sales Tax Act. The Appellate Assistant Commissioner had excluded this turnover based on a previous judgment. However, the Board of Revenue, in a suo motu revision, held that the turnover should be taxed as bullion and included in the total turnover. The Court rejected the assessee's argument against the liability to tax this turnover under section 7-A, citing a similar case. The Court upheld the Board's decision to tax the turnover under section 7-A.

Revision of orders dated 27th November, 1970, and 20th March, 1971 by the Board of Revenue:
The Board of Revenue initiated revision proceedings based on a Supreme Court decision, proposing to revise the orders dated 27th November, 1970, and 20th March, 1971. The Court noted that the Board could revise the Appellate Assistant Commissioner's order within the statutory period of five years, but the order dated 27th November, 1970, could not be revised in 1976. The Court held that the Board's revision was limited to taxing the turnover under section 7-A and could not affect the compounding benefit granted in the order dated 27th November, 1970. The Court partially allowed the appeal, restricting the revision to tax the turnover under section 7-A and maintaining the compounding benefit for the assessee.

In conclusion, the Court upheld the taxability of the turnover under section 7-A and restricted the Board's revision to only tax that turnover, preserving the compounding benefit for the assessee granted in the original order.