1965 (7) TMI 66 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of revisional powers under the General Sales Tax Act, 1125 and the General Sales Tax Rules, 1950 in relation to the time limitation for exercising such powers.

Analysis:
The judgment addresses the interpretation of revisional powers under the General Sales Tax Act, 1125 and the General Sales Tax Rules, 1950, specifically focusing on the time limitation for exercising these powers. The court refers to a previous case where it was held that the revisional powers conferred on the Deputy Commissioner of General Sales Tax cannot be exercised after the expiry of the period provided by Rule 33 of the General Sales Tax Rules. The court highlights the relevant provisions of Section 15 of the General Sales Tax Act, 1125, which empower the Deputy Commissioner to call for and examine orders passed under the Act for legality or propriety. The court also mentions Rule 33 of the General Sales Tax Rules, 1950, which allows the assessing authority to determine escaped turnover within three years from the relevant year. The court emphasizes that the restriction on revisional powers applies only to matters falling under Rule 33, such as escaped turnover.

Furthermore, the court clarifies that the revisional power under Section 15 can only be exercised by the revisional authority in circumstances where the Sales Tax Officer could have taken action under Rule 33. It is emphasized that after the lapse of three years from the end of the assessment year, the Sales Tax Officer cannot act under Rule 33. In the specific case under consideration, the Deputy Commissioner's actions related to escaped turnover for the assessment year 1955-1956, which ended on 31-3-1956. The court ultimately allows the tax revision case without ordering costs, affirming the limitation on the exercise of revisional powers in cases of escaped turnover.