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2012 (3) TMI 391 - HC - VAT and Sales TaxRevisional order passed by the fourth respondent to revise the final assessment order - Held that - Since the fourth respondent proceeded to pass the revisional order in violation of the bar enjoined by section 20(2A) of the Act and despite noticing the objections in the revisional order and without either discussing, analysing or dealing with these objections, we consider the revisional order to be perverse apart from being illegal and erroneous. We accordingly allow the writ petition with costs of ₹ 1,000 (rupees one thousand only) of which ₹ 500 shall be paid to the petitioner and ₹ 500 to the Member Secretary, Andhra Pradesh State Legal Services Authority, Hyderabad, for the credit of the authority, within a period of one month from the date of receipt of a copy of this order.
Issues involved:
1. Revision of assessment order for the assessment year 2003-04 by the fourth respondent. 2. Applicability of section 20(2A) of the Andhra Pradesh General Sales Tax Act, 1957. 3. Interpretation of the revisional power conferred under section 20 of the Act. 4. Compliance with legal precedents and authoritative interpretations. Issue 1: Revision of assessment order for the assessment year 2003-04 by the fourth respondent: The writ petition challenged the revisional order dated February 25, 2008, issued by the fourth respondent, which withdrew the exemption granted on the turnover pertaining to the sale of HSD oil for the assessment year 2003-04. The revision was based on the contention that the transactions did not qualify for exemption under section 38 read with section 5 of the Act as they occurred within the State of Andhra Pradesh. The petitioner argued against the revision, citing the pendency of the same issue before the Sales Tax Appellate Tribunal (STAT) in a different appeal. The court found the revision to be without jurisdiction and unsustainable, quashing the impugned order. Issue 2: Applicability of section 20(2A) of the Andhra Pradesh General Sales Tax Act, 1957: Section 20(2A) of the Act restricts the exercise of revisional power by the specified authorities in cases where the issue or question is the subject of an appeal before the Appellate Tribunal. The petitioner contended that the revisional power could not be exercised due to the pendency of the issue before the STAT in a separate appeal. The court referred to legal precedents, including the decision in Indo National Limited, which clarified that the bar on revisional jurisdiction applies irrespective of whether the issue pertains to the same assessment year or not. The court held that the revisional order was in violation of section 20(2A) and therefore unsustainable. Issue 3: Interpretation of the revisional power conferred under section 20 of the Act: Section 20 of the Act outlines the revisional power granted to specified authorities. The court emphasized that the revisional authority must adhere to the limitations imposed by the Act, particularly section 20(2A), which bars the exercise of revisional jurisdiction when the issue is pending before the Appellate Tribunal. The court highlighted the need for strict compliance with statutory provisions and legal interpretations to ensure the validity of revisional orders. Issue 4: Compliance with legal precedents and authoritative interpretations: The court reiterated the importance of following established legal precedents and authoritative interpretations in matters of tax assessment and revisional powers. The petitioner's objections based on previous court decisions were not adequately addressed by the revisional authority, leading to a finding of perversity and illegality in the revisional order. The court allowed the writ petition, directing the payment of costs and refund of the disputed tax amount deposited by the petitioner in compliance with the interim stay order. This detailed analysis of the judgment addresses the key issues involved, including the revision of assessment orders, the application of statutory provisions, the interpretation of legal precedents, and the importance of complying with established legal principles in tax matters.
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