2016 (10) TMI 76 - HC - VAT and Sales Tax

Revision of assessment - powers conferred on the revisional authority under Section 32 of the TNGST Act, 1959 - assessment for the year 1995-96 - no revision of assessment for the said year - the issue involved is squarely covered by the judgment of the Hon ble Division Bench of the Court in the case of Mohan Breweries and Distilleries Limited v. Commercial Tax Officer, Porur Assessment Circle, Chennai and others 2004 (9) TMI 617 - MADRAS HIGH COURT and it was contended that on identical facts, the Hon ble Division Bench set aside the demands. The subject matter in issue is covered by the order passed by the Hon ble Division Bench and the matter is pending before the Hon ble Supreme Court. Therefore, it would be appropriate for the Revenue to await the decision in the case of Mohan Breweries and Distilleries Limited, which is now pending before the Hon ble Supreme Court. Writ petition allowed - matters remitted back to the assessing officer for fresh consideration, who shall await the decision of the appeal filed by the Revenue as against the judgment of the Hon ble Division Bench of the Court in the case of Mohan Breweries and Distilleries Limited and in the event of action being initiated, the petitioner herein will not be entitled to plead limitation as against such action initiated by the Revenue in the light of the proviso to Section 32 (2) of the Act - decided in favor petitioner.

Summary

Issues:
Challenge to revisional authority's proceedings under TNGST Act, 1959 and TNVAT Act, 2006 for assessment years. Interpretation of applicability of tax on purchase of empty bottles from unregistered dealers. Invocation of special powers by Deputy Commissioner under Section 32 of TNGST Act, 1959. Consideration of pending appeal before Hon'ble Supreme Court and limitation period under Section 32(2) of the Act.

Analysis:
The petitioner, a Public limited Company, challenged the revisional authority's proceedings under the TNGST Act, 1959 and TNVAT Act, 2006 for assessment years, citing a judgment by the Hon'ble Division Bench in a similar case. The Revenue opposed, stating an appeal was filed before the Hon'ble Supreme Court. The Appellate Deputy Commissioner remanded the matter considering the pending appeal against the earlier judgment. The Deputy Commissioner invoked special powers under Section 32 of the TNGST Act, 1959, leading to a plea regarding limitation under Section 32(2) of the Act.

The Deputy Commissioner's special powers were discussed, highlighting the provision under Section 32(2) of the Act regarding the exclusion of time if an issue is pending before the Supreme Court. The judgment of the Hon'ble Division Bench was crucial, and the matters were remitted back to the assessing officer for fresh consideration, pending the decision of the appeal before the Supreme Court. The petitioner was advised not to plead limitation if any action was initiated by the Revenue, in line with the proviso to Section 32(2) of the Act. The writ petitions were allowed, impugned orders set aside, and matters remitted back for reconsideration, with a directive to await the Supreme Court's decision.

In conclusion, the judgment addressed the challenge to revisional authority's proceedings, interpretation of tax applicability, invocation of special powers by the Deputy Commissioner, and the impact of a pending appeal before the Supreme Court on limitation periods. The decision to remit the matters back for fresh consideration in light of the pending appeal showcased a comprehensive analysis of legal provisions and precedents, ensuring fairness and adherence to procedural requirements.