2025 (2) TMI 471 - HC - VAT / Sales Tax

Challenge to Assessment Order revised by the Additional Commissioner of Commercial Taxes - HELD THAT - It is not inclined to grant interference in the matter inasmuch as the question as to revisability of Assessment Order of the kind is no longer res integra. In KIRLOSKAR POWER SUPPLY CO. LTD. VERSUS STATE OF KARNATAKA 2006 (6) TMI 490 - KARNATAKA HIGH COURT it is observed Jurisdiction is clearly defined under section 15 of the Act. In the case on hand it is seen that the Additional Commissioner has rightly invoked his power under section 15 of the Act for the purpose of revising the order passed by the Joint Commissioner. However while passing the final order he has chosen to set aside the subsequent assessment order passed by the assessing authority. This could not have been done by him in terms of section 15 of the Act. It is difficult to countenance the contention of learned AGA that the expression any proceedings employed in Section 15 would include the order of the Commercial Tax officer and therefore the impugned order is sustainable. Appeal allowed.

Summary

The Karnataka High Court considered an appeal under the Karnataka Tax on Entry of Goods Act, 1979, challenging an Assessment Order revised by the Additional Commissioner of Commercial Taxes. The appellant argued that the Assessment Order by the Commercial Tax Officer was not revisable, citing a previous decision. The respondents defended the order, stating that the proceedings fell under the revisable scope of Section 15. The court referred to a previous case and concluded that the Additional Commissioner exceeded his revisionary powers by setting aside the assessment order. Consequently, the court allowed the appeal, setting aside the impugned order and awarded costs to the appellant.