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Issues Involved:
1. Whether the notice dated 10th February 1970 is a notice under Section 12-A or Section 25-A of the Karnataka Sales Tax Act, 1957. 2. Whether the opportunity of being heard as contemplated in Section 25-A of the Act is afforded to the appellant-firm. 3. Whether the revisional authority was proper in refusing to investigate the subsequent refund of the tax collected earlier, to pass on exemption to the appellant-firm in the proceedings made under Section 21 of the Act. Detailed Analysis: Issue 1: Nature of the Notice The primary question was whether the notice dated 10th February 1970 was issued under Section 12-A or Section 25-A of the Karnataka Sales Tax Act, 1957. The proceedings under Section 12-A are for assessing escaped turnover, while Section 25-A deals with rectifying mistakes apparent from the records. The Tribunal examined the contents of the notice and found that it did not mention escaped turnover or turnovers subjected to a lesser rate of tax, which are essential for a notice under Section 12-A. Instead, the notice broadly brought out the requirements of Section 25-A, including references to the earlier assessments, exemptions, and amendments to the CST Act. Therefore, despite the erroneous reference to Section 12-A in the heading, the Tribunal concluded that the notice was indeed issued under Section 25-A. Issue 2: Opportunity of Being Heard The appellant-firm contended that it was not given a reasonable opportunity as required under Section 25-A. The Tribunal noted that the notice called upon the appellant-firm to file written objections within seven days, which the appellant-firm did. The opportunity contemplated under Section 25-A does not necessarily include a personal hearing but requires a fair chance to present one's case. The Tribunal found that the appellant-firm did not express a need for further opportunity beyond the written objections and concluded that the opportunity provided was sufficient and in accordance with the principles of natural justice. Issue 3: Investigation of Subsequent Refund The appellant-firm argued that the revisional authority should have investigated the subsequent refund of tax collected earlier, which was not considered by the assessing authority. The Tribunal referred to Section 21(2) of the Act, which allows the revisional authority to examine the records of the order passed by the assessing authority but not to investigate subsequent events not part of the original proceedings. The Tribunal cited various judgments, including those of the Supreme Court, to support the view that the revisional authority's jurisdiction is limited to the records on which the original order was based. The Tribunal found that the subsequent refund was not before the assessing authority and, therefore, the revisional authority was correct in refusing to investigate it. Conclusion: The Tribunal dismissed both appeals, upholding the orders of the assessing and revisional authorities. The notice was deemed to be under Section 25-A, the opportunity provided was found to be adequate, and the revisional authority was not required to investigate subsequent refunds not part of the original proceedings.
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