2009 (6) TMI 954 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to the order of the Appellate Tribunal u/s 16 of the Tamil Nadu General Sales Tax Act, 1959.

The State challenged the Appellate Tribunal's order in CTSA No. 460 of 2001, questioning the correctness of invoking section 16 of the Act. The assessing officer excluded the turnover of "monafilament niwar" based on a tax exemption circular. However, he later reopened the assessment u/s 16(1)(a) for "escaped assessment." The Appellate Assistant Commissioner held that such reassessment was impermissible, as there was no escapement from assessment. The Appellate Tribunal upheld this view, leading to the State's revision.

Upon review, the court found that the assessing officer lacked jurisdiction to invoke section 16(1)(a) in this case. It was established that the entire turnover related to "monafilament niwar" was disclosed to the assessing officer initially. The officer, aware of the tax exemption circular, made a conscious decision regarding the item. As there was no deliberate or inadvertent concealment by the assessee, the concept of "escapement assessment" did not apply. Therefore, the conditions for invoking section 16(1)(a) were not met.

Consequently, the court determined that there was no legal question warranting the revision. The revision was dismissed, with no costs imposed.