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TMI Blog1976 (3) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the High Court was right in reversing the order of the Appellate Tribunal in so far as it related to the appellants' claim to the aforesaid exemption. - C.A. No. 1699 of 1973, - - - Dated:- 24-3-1976 - RAY A.N., BEG M.H. AND JASWANT SINGH JJ. P. Ram Reddy, Senior Advocate (A.V. Rangam and Miss A. Subhashini, Advocates, with him), for the respondent. K.S. Ramamurthi, Senior Advocate (Mrs. S. Gopalakrishnan, Advocate, with him), for the appellant. -------------------------------------------------- The judgment of the Court was delivered by JASWANT SINGH, J.- This is an appeal by special leave against the judgment and order dated May 4, 1973, passed by the High Court of Madras in T.C. No. 223 of 1969. It ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tived the contention of the appellants regarding his jurisdiction to levy the penalty, and revising the assessment levied a penalty of Rs. 3,371 under section 12(3) of the Act. The Deputy Commissioner also declined to allow the aforesaid exemption claimed by the appellants on the ground that they "did not file appeals in the regular course as contemplated by the provisions of the Act". The appellants went up in appeal from this order to the Sales Tax Appellate Tribunal, Madras, who substantially allowed the appeal, cancelled the penalty and acting on the statements of transactions filed before him by the appellants allowed an exemption from tax on a turnover of Rs. 5,99,468 as representing the works contracts holding that as suo motu powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Commissioners.-(1) The Deputy Commissioner may, of his own motion, call for and examine an order passed or proceeding recorded by the appropriate authority under section 4-A, sec- tion 12, section 14, section 15, or sub-sections (1) and (2) of section 16 and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such order thereon as he thinks fit. (2) The Deputy Commissioner shall not pass any order under sub- section (1), if- (a) the time for appeal against the order has not expired; (b) the order has been made the subject of an appeal to the Appellate Assistant Commissioner or the Appellate Tribunal, or of a revision in the High Court; or (c) more than five years h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e regularity of any proceeding of such officer, and to pass such orders with respect thereto as he thinks fit. For exercising this power, he may suo motu or on application call for and examine the record of any proceeding or order. There is no doubt that the revising authority may only call for the record of the order or the proceeding, and the record alone may be scrutinised for ascertaining the legality or propriety of an order or regularity of the proceeding. But there is nothing in the Act that for passing an order in exercise of his revisional jurisdiction, if the revising authority is satisfied that the subordinate officer has committed an illegality or impropriety in the order or irregularity in the proceedings, he cannot make or dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 S.T.C. 383 at 400 (S.C.). In regard to the limitations to which the revisional power is subject, this court went on in that case to observe "In fact, when a revisional power is to be exercised, we think that the only limitations, to which that power is subject, are those indicated by this court in K.M. Cheria Abdulla Co.'s case [1965] 16 S.T.C. 875 (S.C.). These limitations are that the revising authority should not trench upon the powers which are expressly reserved by the Acts or by the Rules to other authorities and should not ignore the limitations inherent in the exercise of those powers." In view of the above, we are of the opinion that the suo motu power of revision of the Deputy Commissioner is of wide amplitude and can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he levy of penalty, they made a half- hearted attempt to claim exemption. It will be relevant in this connection to advert to the prayer made by them which is couched in the following terms: "In the circumstances we request you that the Deputy Commissioner may either totally drop the proposal to levy penalty or in the alternative totally cure the illegality of the assessment and render justice." The plea put forth by the appellants that they did not claim exemption under the mistaken impression that the transaction amounted to sale of goods cannot also be countenanced in view of the fact that so far back as in 1954 it was held by the Madras High Court in Gannon Dunkerley and Co. Ltd. v. State of Madras [1954] 5 S.T.C. 216., that works con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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