1991 (3) TMI 347 - HC - VAT and Sales Tax

Summary

Issues:
1. Revision against the order of the Sales Tax Appellate Tribunal remitting appeals to the assessing officer.
2. Interpretation of G.O. Ms. No. 1089 dated 29th June, 1977 regarding waiver of tax liability.
3. Assessment under section 16 of the Tamil Nadu General Sales Tax Act, 1959.
4. Remand of cases to the assessing authority for fresh disposal based on G.O. Ms. No. 1089 conditions.
5. Comparison with the decision in Deputy Commissioner Of Commercial Taxes v. Gnanambal [1980] 46 STC 302.

Analysis:

The High Court of Madras heard a revision against the Sales Tax Appellate Tribunal's order remitting appeals to the assessing officer for fresh disposal. The cases involved manufacturers-cum-dealers in gingerly oil and oil cakes who purchased goods from unregistered dealers. The assessing authority invoked section 16 of the Act to assess the turnover related to gingerly seeds. The assessees claimed entitlement to waiver of tax liability under G.O. Ms. No. 1089 dated 29th June, 1977. The Tribunal remanded the cases to the assessing authority for investigation into compliance with the conditions of the Government Order, leading to the Revenue's revision before the High Court.

G.O. Ms. No. 1089 was issued post a Supreme Court judgment upholding section 7-A of the Act. The Government Order provided conditions for waiver of tax liability for a specified period, including not collecting tax amounts or making provisions for tax liabilities. The Tribunal found that the assessees could potentially benefit from the waiver but required factual verification by the assessing authority. The High Court upheld the Tribunal's decision, emphasizing the need for a thorough investigation to determine eligibility for the waiver under the Government Order.

The Court distinguished the present case from Deputy Commissioner Of Commercial Taxes v. Gnanambal [1980] 46 STC 302, where a specific exemption order was extended beyond its scope by the Tribunal. The Gnanambal decision highlighted the importance of adhering strictly to the terms of a Government Order and not expanding its application based on subjective interpretations. In contrast, the cases under review did not involve such overreach, making the Gnanambal judgment inapplicable to the current scenario.

Ultimately, the High Court found no merit in the tax revision cases and dismissed them without costs, affirming the Tribunal's decision to remand the matters to the assessing authority for further investigation and disposal in accordance with the conditions of G.O. Ms. No. 1089.