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1996 (8) TMI 309 - SC - VAT and Sales TaxWhether the Board of Revenue functioning under the provisions of the Tamil Nadu General Sales Tax Act 1959 can revise in exercise of its suo motu revisional jurisdiction that part of the order of the Appellate Assistant Commissioner which is against the Revenue when the other part of this very order of the Appellate Assistant Commissioner against the assessee is made subject-matter of an appeal before the Sales Tax Appellate Tribunal functioning under the same Act? Held that - We entirely concur with the view of the High Court that piecemeal scrutiny of the order of the Appellate Assistant Commissioner partly by the Appellate Tribunal at the instance of the dissatisfied assessee and partly by the Board of Revenue in exercise of its suo motu revisional powers against other part of the same order in favour of the assessee is contra-indicated by the aforesaid relevant provisions of the Act. It must therefore be held that once the order of Appellate Assistant Commissioner is made subject-matter of appeal before the Appellate Tribunal by the assessee who is aggrieved by only a part of such order the Board of Revenue cannot exercise its revisional jurisdiction against the remaining part of that very order of the Appellate Assistant Commissioner which is in favour of the assessee and against the Revenue. Appeal dismissed.
Issues Involved:
1. Jurisdiction of the Board of Revenue under the Tamil Nadu General Sales Tax Act, 1959. 2. Scope of the Appellate Tribunal's powers when an appeal is filed by the assessee. 3. Applicability of Sections 34 and 36 of the Tamil Nadu General Sales Tax Act, 1959. Detailed Analysis: 1. Jurisdiction of the Board of Revenue: The primary issue was whether the Board of Revenue could exercise suo motu revisional jurisdiction over the part of the Appellate Assistant Commissioner's order that was in favor of the assessee when the other part of the order was already under appeal before the Sales Tax Appellate Tribunal. The High Court had ruled that once an appeal is filed by the assessee, the entire order falls within the purview of the Appellate Tribunal, thereby stripping the Board of Revenue of its jurisdiction to revise the remaining part of the order. The appellant State of Tamil Nadu contested this, arguing that the Board retained the power to review the portion of the order favorable to the assessee since it was not the subject of the appeal. 2. Scope of the Appellate Tribunal's Powers: The appellant contended that the Tribunal's jurisdiction was limited to the part of the order appealed by the assessee. However, the High Court interpreted Sections 34 and 36 to mean that once an appeal is filed, the Tribunal's jurisdiction extends to the entire order, not just the part contested by the assessee. The Tribunal has the authority to enhance, reduce, or annul the assessment or penalty, even if this means revisiting the favorable part of the order for the assessee. 3. Applicability of Sections 34 and 36: Section 34(2)(a) and (b) of the Act imposes restrictions on the Board of Revenue's revisional powers. Specifically, the Board cannot revise orders that are subject to appeal before the Tribunal or revision before the High Court. The High Court ruled that this bar applies to the entire order once it is appealed, not just the contested part. Section 36(3)(a)(i) further supports this by allowing the Tribunal to enhance assessments or penalties, indicating that the entire order is under its scrutiny. Conclusion: The Supreme Court upheld the High Court's interpretation that once an appeal is filed by the assessee, the entire order of the Appellate Assistant Commissioner falls under the jurisdiction of the Appellate Tribunal. Consequently, the Board of Revenue cannot exercise its revisional powers over any part of the order. The appeals and special leave petitions by the State of Tamil Nadu were dismissed, affirming that piecemeal scrutiny by different authorities is not permissible under the Act. The judgment emphasizes the comprehensive jurisdiction of the Appellate Tribunal once an appeal is filed, thereby ensuring a unified and thorough review process.
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