1987 (2) TMI 504 - HC - VAT and Sales Tax

Issues Involved:
1. Jurisdiction of the Board of Revenue in revising assessments beyond the period of limitation.
2. Authority of the Board of Revenue to pass an original order of assessment under the guise of revision.
3. Determination of taxable turnover by the Board of Revenue exceeding the figure arrived at by the assessing officer.
4. Simultaneous revision of the orders of the Joint Commercial Tax Officer and the Appellate Assistant Commissioner by the Board of Revenue.

Issue-wise Detailed Analysis:

1. Jurisdiction of the Board of Revenue in revising assessments beyond the period of limitation:

The appellants contended that the Board of Revenue exceeded its jurisdiction by revising the assessment beyond the period of limitation prescribed under Section 16 of the Tamil Nadu General Sales Tax Act. The learned Government Pleader argued that Section 16's limitation does not apply to revisions under Section 34, as both sections are independent. The court cited precedents, including *Padmavathi v. State of Tamil Nadu* and *Kutty Flush Doors and Furniture Co. (P.) Ltd. v. State of Tamil Nadu*, which held that the limitations under Section 16 do not apply to revisions under Section 34. The court concluded that the Board's revisional order was within the period prescribed by Section 34, thus the limitation under Section 16 was inapplicable.

2. Authority of the Board of Revenue to pass an original order of assessment under the guise of revision:

The appellants argued that the Board of Revenue, under the guise of revision, cannot pass an original order of assessment. The court noted that the Board's action was not an original assessment but a reassessment to correct the exemption wrongly granted by the assessing officer. The court referenced *R.K. Jamini Ranjan v. Member, Board of Revenue*, which supported the Board's power to reassess previous turnovers. The court held that Section 34 grants the Board wide powers to reassess turnovers, and in the present case, it was merely correcting an erroneous exemption.

3. Determination of taxable turnover by the Board of Revenue exceeding the figure arrived at by the assessing officer:

The appellants contended that the Board of Revenue could not determine a taxable turnover exceeding the figure arrived at by the assessing officer. The court found that the Board had issued a notice to the assessee proposing to revise both the orders of the assessing authority and the Appellate Assistant Commissioner. The court distinguished the case from *Rajagopala Naicker v. Government of Pondicherry*, noting that the Tamil Nadu General Sales Tax Act's provisions differ from those of the Pondicherry General Sales Tax Act. The court concluded that the Board's revision did not exceed its authority.

4. Simultaneous revision of the orders of the Joint Commercial Tax Officer and the Appellate Assistant Commissioner by the Board of Revenue:

The appellants argued that the Board of Revenue could not revise both the orders simultaneously under Section 34. The court examined the language of Section 34 and found that it allows the Board to revise orders from various authorities. The court referenced *Yercaud Coffee Curing Works Ltd. v. State of Madras*, which implied that the Board could interfere with both orders as long as each order was within the period of limitation. The court rejected the appellants' contention, affirming the Board's authority to revise both orders simultaneously.

Additional Considerations:

The appellants also argued that the revision was based on a subsequent Supreme Court decision, and since they had not collected tax based on the prevailing Madras High Court decision, they should not be burdened with it. The court suggested that the appellants could seek a waiver from the Government but stated that it could not interfere on the grounds of equity.

Conclusion:

The court dismissed the tax case appeal, upholding the Board of Revenue's order and rejecting all contentions raised by the appellants. The judgment emphasized the independence of Sections 16 and 34 of the Tamil Nadu General Sales Tax Act and affirmed the Board's authority to reassess and revise orders within the prescribed period. The appeal was dismissed with no costs.

← Previous Next →