1988 (3) TMI 412 - HC - VAT and Sales Tax

Summary

Issues:
Jurisdiction of Commissioner to revise orders of Appellate Deputy Commissioner under Section 20 of Andhra Pradesh General Sales Tax Act, 1957.

Detailed Analysis:

The judgment delivered by the Andhra Pradesh High Court involved two appeals challenging the order of the Commissioner of Commercial Taxes, Hyderabad, which set aside the order of the Appellate Deputy Commissioner (Commercial Taxes), Kurnool, regarding the exemption from payment of tax on turnover related to the supply of stone-ballast for the assessment years 1979-80 and 1980-81. The appellant contended that the Commissioner had no jurisdiction to revise the orders of the Appellate Deputy Commissioner under Section 20 of the Act. The relevant provision, Section 20 of the Andhra Pradesh General Sales Tax Act, empowers the Commissioner to call for and examine the record of any order passed by subordinate authorities for legality or propriety and pass suitable orders. The appellant argued that during the material time, only the joint Commissioner (Commercial Taxes), Legal, had the authority to revise orders of the Appellate Deputy Commissioners. It was highlighted that the rules were later amended to make Deputy Commissioners, including the Appellate Deputy Commissioners, subordinate to the Commissioner for the exercise of powers under Section 20.

The Court noted that the Commissioner, at the time of passing the impugned order, held additional charge of the post of joint Commissioner (Commercial Taxes), Legal. However, it was observed that the impugned order did not indicate that the Commissioner was exercising powers as the joint Commissioner. The Court found this submission untenable and held that the order was liable to be quashed due to this anomaly. Additionally, the Commissioner's assertion that no contracts were produced by the appellant before the Appellate Deputy Commissioner was disputed. The Court pointed out that the order of the Appellate Deputy Commissioner explicitly mentioned that copies of the agreement were presented by the appellant's representative. Consequently, the Court set aside the impugned order and allowed the appeals, emphasizing that the finding of the Commissioner regarding the absence of contracts was incorrect.

In conclusion, the High Court clarified the jurisdictional aspects under Section 20 of the Act, emphasizing the need for adherence to statutory provisions and proper exercise of revisionary powers by the competent authorities. The judgment underscored the importance of procedural regularity and factual accuracy in tax assessment matters, ensuring that orders are passed within the ambit of the law.