2009 (12) TMI 894 - HC - VAT and Sales Tax

Summary

Issues:
Assessment based on inspection results, revision of taxable turnover, penalty imposition, appeal process, question of law regarding levy of tax on turnover, interpretation of Section 6A of the CST Act, applicability of Supreme Court judgment, absence of findings on misrepresentation or collusion.

Assessment based on inspection results:
The petitioner was initially assessed on a total and taxable turnover, which was later revised following an inspection by enforcement officers. The taxable turnover was re-fixed at a higher amount, and a penalty was levied based on the inspection results.

Appeal process:
The petitioner appealed the revised assessment before the Appellate Assistant Commissioner, who granted relief by reducing the turnover and penalty amount. Subsequently, the petitioner further appealed to the Sales Tax Tribunal, which dismissed the appeal, leading to the revision filed before the High Court.

Question of law regarding levy of tax on turnover:
The main issue raised in the revision was whether the Sales Tax Appellate Tribunal's decision to confirm the levy of tax on a specific turnover was correct, considering the exemption claimed under Section 6A of the CST Act initially accepted by the assessing authority.

Interpretation of Section 6A of the CST Act:
The High Court referred to a Supreme Court judgment on Section 6A, highlighting that the order under this section is conclusive unless vitiated by fraud, collusion, misrepresentation, or other specified grounds. The judgment emphasized that a mere change in opinion or discovery of new material is not sufficient to reopen proceedings.

Applicability of Supreme Court judgment:
The High Court applied the principles laid down by the Supreme Court in the case of Ashok Leyland Ltd. v. State of Tamil Nadu, emphasizing that without a finding of misrepresentation or collusion, the assessing authority cannot reopen proceedings solely based on a change in opinion or new material.

Absence of findings on misrepresentation or collusion:
Since none of the authorities recorded any finding of misrepresentation or collusion in the case, the High Court set aside the Tribunal's order confirming the tax levy on a specific turnover. Consequently, the turnover amount and penalty related to that turnover were deleted, and the tax case revision was allowed in favor of the petitioner.

Costs:
The High Court ruled that no costs were to be imposed in this matter.