1998 (3) TMI 650 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of taxable turnover for the assessment year 1982-83.
2. Appeal against the assessment order before the Appellate Assistant Commissioner (CT) and Tamil Nadu Sales Tax Appellate Tribunal.
3. Reopening of the case under the Tamil Nadu General Sales Tax Act, 1959, and Central Sales Tax Act.
4. Appeal against the order of the Appellate Assistant Commissioner regarding the deletion of turnover.
5. Validity of the order of remand by the Tribunal regarding the enhancement petition.

Analysis:

1. The case involved the assessment of taxable turnover for the assessment year 1982-83 by the Deputy Commercial Tax Officer, Tiruchendur, for M/s. Darangadara Chemical Works Limited. The assessing officer determined the taxable turnover, including turnover not covered by "C" forms, turnover covered by "C" forms, and alleged depot sales treated as inter-State sales. The total taxable turnover was calculated to be Rs. 6,91,03,698.47.

2. The assessee-dealers filed an appeal against the assessment order before the Appellate Assistant Commissioner (CT), Tirunelveli. The Appellate Assistant Commissioner upheld part of the appeal, treating certain transactions as inter-State sales and others as branch transfers. Subsequently, the assessee-dealers appealed to the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), which allowed the appeal in full.

3. The Revenue filed Tax Case Revision Nos. 438 to 449 of 1990 for various assessment years, challenging the orders. During the pendency of these revisions, the assessing officer reopened the case under the TNGST Act and CST Act, bringing alleged escaped turnover to tax and levying penalties.

4. The assessee-dealers appealed the reopening of the case before the Appellate Assistant Commissioner, who deleted the turnover but rejected the plea of limitation. This decision was further appealed before the Tamil Nadu Sales Tax Appellate Tribunal, questioning the rejection of the plea of limitation.

5. The Tribunal remanded the enhancement petition to the revisional authority for de novo examination. The High Court, in the present case, analyzed the validity of this remand order. The Court criticized the Tribunal for not applying its mind adequately and remanding the matter unnecessarily. The Court set aside the remand order and directed the Tribunal to dispose of the matter on merits within three months.

This detailed analysis covers the issues related to the assessment of taxable turnover, appeals before the Appellate Assistant Commissioner and Tribunal, reopening of the case by the assessing officer, and the validity of the remand order by the Tribunal.