1991 (4) TMI 418 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of Joint Commissioner setting aside appellate authority's decision and directing assessment on specific turnover under Tamil Nadu General Sales Tax Act, 1959.

Analysis:
The appellant, a hotel owner, challenged the Joint Commissioner's order directing assessment on a specific turnover under the Tamil Nadu General Sales Tax Act, 1959. The Appellate Assistant Commissioner had earlier determined the taxable turnover at Rs. 1,91,116 based on the nature of transactions involving food and drinks supplied by the hotel. The Joint Commissioner, considering subsequent Supreme Court decisions, proposed a revised assessment and tax levy on a turnover of Rs. 50 for purchases from non-assessees. The Court found the Joint Commissioner's conclusions to be based on conjectures rather than factual details, leading to the order being set aside.

The Court acknowledged the need for a fresh consideration by the assessing authority in line with Supreme Court decisions emphasizing the importance of evaluating the taxability of transactions on a case-by-case basis. The assessing authority was directed to re-examine the matter based on the principles established by the Supreme Court and previous court decisions. The Court specified that the turnover fixed by the Appellate Assistant Commissioner at Rs. 1,91,116 should be accepted, and any additional amount proposed by the Joint Commissioner should be reviewed with relevant evidence and after hearing the appellant.

In conclusion, the tax appeal was allowed, and the matter was remitted to the assessing authority for a fresh assessment in accordance with the Court's directions. No costs were awarded in this decision.