2016 (8) TMI 801 - HC - VAT and Sales Tax

Revision of assessment - co-operative society carrying out printing works sale works contract change of opinion Held that - the decision taken by the Appellate Authority for the earlier assessment years by an order dated 04.05.2001 binds the respondent and therefore, the respondent could not have issued the impugned revision notice. Also, it was held that no sales tax was payable on the supply of printed material which were printed by the dealer on orders received from their customers, according to their specification using their own paper in the case State of Tamil Nadu v. Anandam Viswanathan 1989 (1) TMI 359 - SUPREME COURT OF INDIA writ petition allowed - impugned order quashed decided in favor of appellant.

Summary

Issues:
Challenge to revision notice under Section 60 - Change of opinion - Nature of transaction - Works contract or sale - Applicability of previous appellate orders - Interpretation of relevant legal precedents

Analysis:

Issue 1: Challenge to revision notice under Section 60
The petitioner, a registered dealer under the Tamil Nadu General Sales Tax Act, challenged a revision notice calling for explanation on the classification of transactions as sale or works contract. The Assessing Officer sought to revise the assessment for the year 1999-2000, following previous decisions on similar transactions for the years 1997-98 and 1998-99.

Issue 2: Change of opinion and nature of transaction
The petitioner argued that the revision lacked merit as it was based on a change of opinion rather than fulfilling the parameters under Section 60. The petitioner contended that the transaction in question, involving supplying printed material to customers using their paper, should be considered a works contract, citing recent Division Bench decisions supporting this interpretation.

Issue 3: Applicability of previous appellate orders
The petitioner relied on the Appellate Assistant Commissioner's favorable decision for the years 1997-98 and 1998-99, asserting that the same reasoning should apply to the assessment year 1999-2000. The petitioner argued that the Assessing Officer could not disregard the previous appellate decision and issue a revision notice without proper grounds.

Issue 4: Interpretation of legal precedents
The court considered relevant legal precedents, including cases like State of Tamil Nadu v. Orient Litho Press and State of Tamil Nadu v. Premier Litho Works, which held similar transactions to be works contracts. The court also distinguished the case of State of Tamil Nadu v. Cornwallis Press, emphasizing that the circumstances were different, and the decision in Cornwallis Press did not support the respondent's arguments.

Conclusion:
The court found that the petitioner was entitled to rely on the previous appellate decision and that the nature of the transaction aligned with the definition of a works contract. Relying on the Division Bench decisions supporting the petitioner's position, the court allowed the writ petition, quashed the revision notice, and closed the connected miscellaneous petition without costs.