1987 (5) TMI 367 - HC - VAT and Sales Tax

Summary

Issues:
Jurisdiction of Appellate Assistant Commissioner to accept forms F and C at the appellate stage and grant reliefs based on the documents.

Analysis:
The case involved the respondent-assessee, an inter-State dealer, challenging the assessment of tax on consignment sale. The Appellate Assistant Commissioner accepted forms F and C produced at the appellate stage and directed the deletion of the tax amount. The Appellate Tribunal upheld this decision, emphasizing that the appeal is a continuation of assessment proceedings, allowing additional evidence if the assessee was prevented from producing it earlier. The questions raised pertained to the jurisdiction of the Appellate Assistant Commissioner in accepting these forms at the appellate stage.

The Revenue contended that rule 6(1B) of the Central Sales Tax (Kerala) Rules required documents like forms F and C to be produced before the assessing authority, disentitling the assessee if not done so. Citing a previous judgment, the Revenue argued that the appellate authority lacks the power to receive such documents as evidence at the appellate stage. However, the Court disagreed, highlighting that the appellate authority's jurisdiction is coterminous with the assessing authority, allowing for a re-do of assessment. The Court referenced the Supreme Court's decision in Kanpur Coal Syndicate case to support this view.

Another argument raised was regarding section 6A(1) of the Central Sales Tax Act, which mandates the production of certain documents within a prescribed time. The Court reasoned that the assessing authority could extend the time for production of forms based on sufficient cause, even after assessment. The Court agreed with the view that the assessing authority could rectify or reopen cases to implement corrective actions.

The Court further explained that the Appellate Assistant Commissioner's power under section 34 of the KGST Act allows for the revision of every process leading to the assessment. The Court emphasized that the appellate authority can correct errors and grant reliefs to the assessee based on documents produced at the appellate stage. Referring to a Supreme Court decision in Commissioner of Income-tax v. McMillan & Co., the Court affirmed that the Appellate Assistant Commissioner has the power to correct errors within the framework of the Act.

In conclusion, the Court upheld the decision of the Appellate Tribunal, stating that the Appellate Assistant Commissioner acted within his jurisdiction in accepting forms F and C at the appellate stage and granting reliefs to the assessee. The questions raised in the tax revision case were answered against the State, leading to the dismissal of the case without costs.