2011 (12) TMI 462 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment order based on purchases from traders.
2. Appeal against the order of the assessing officer.
3. Modification of order by the Appellate Assistant Commissioner.
4. Enhancement petition filed by the Revenue.
5. Decision of the Tamil Nadu Sales Tax Appellate Tribunal.
6. Dismissal of enhancement petition for the assessment year 1989-90.
7. Partial allowance of enhancement petition for the assessment year 1990-91.
8. Lack of reasons provided by the Tribunal for allowing the enhancement petition in part.
9. Comparison of decisions for 1989-90 and 1990-91 assessment years.
10. Setting aside the order allowing the enhancement petition for the assessment year 1990-91.

Analysis:
The judgment pertains to Tax Case (Revision) Nos. 1284 of 2006 and 410 of 2011 filed against the Sales Tax Appellate Tribunal's order. The assessing officer passed a revised assessment order for the year 1990-91 based on purchases from traders. The Appellate Assistant Commissioner modified the order, granting partial relief but sustaining a portion. The Revenue filed an enhancement petition against the relief granted. The Tribunal partly allowed the enhancement petition for the year 1990-91, without providing reasons, unlike the dismissal of a similar petition for the previous year. The High Court noted the inconsistency and decided to follow the precedent set for the 1989-90 assessment year, setting aside the order allowing the enhancement petition for 1990-91. The Tribunal's decision was overturned, and the Tax Case Revision No. 410 of 2011 was allowed with the observation that the order in all other respects remains unchanged. No costs were awarded in this matter.