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TMI Blog1966 (2) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... st purchases of the cotton within the State were exigible to tax, the levy being a single point levy. The Commercial Tax Officer did not bring to tax the value of the cotton purchased during the accounting period and not sold in that period. Evidently, he was of the opinion that those purchases would be exigible to tax only when the goods in question were sold outside the State, which event or events had not taken place during the accounting period. One other fact need be stated at this stage and that is, cotton is one of the declared goods. When the above facts came to the notice of the Commissioner of Commercial Taxes, he took suo motu action under section 21(2) of the "Act" and issued the following notice to the assessee on 6th February, 1964: "No. CTRP.-337/63-64-Office of the Commissioner of Commercial Taxes in Mysore, Bangalore 1, dated 6th February, 1964. Show cause notice under section 21(6) of Mysore Sales Tax Act, 1957. Subject: Mysore Sales Tax Act, 1957-M/s. International Cotton Corporation (Pvt.) Ltd., Hubli-Year of assessment 1st October, 1957 to 31st July, 1958-Revision of Commercial Tax Officer's Order-Notice issued. From the perusal of the assessment records for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse of his arguments, Mr. K. Srinivasan, the learned counsel for the assessee urged the following contentions: (1) Purchases of declared goods remaining unsold are not liable to be taxed under section 5(4) as it stood at the relevant time; (2) The Commissioner of Commercial Taxes could not have looked into the records of the subsequent year or years, while suo motu revising the assessment order made by the assessing officer; and (3) Purchases of declared goods sold outside this State on consignment basis are not liable to tax under section 5(4) of the "Act". On the basis of the decision of this Court in Hormusji Hirjibhoy and Co. v. Commercial Tax Officer, Circle II, Hubli[1962] 13 S.T.C. 773., the Commissioner came to the conclusion that the purchases of declared goods remaining unsold are liable to be taxed under section 5(4) of the "Act" as it stood at the relevant point of time. Mr. Srinivasan is right in his contention that the authority of the decision relied on by the Commissioner is greatly shaken in view of the Full Bench decision of this Court in The State of Mysore v. Gujjadi Narayan Nayak and Another[1964] 15 S.T.C. 906. But the turnover in question should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e empowering the Commercial Tax Officer to revise the orders of his Deputy Commercial Tax Officer, permitted him to call for and examine records of any order passed or any proceeding recorded by the Deputy Commercial Tax Officer. In that decision the Court proceeded to observe thus: "Now what exactly is the meaning to be attached to the expression 'the record of any order passed'. The records which the revising authority calls for are the records of the assessment. They would include the assessment order as well as the other files of the assessing authority which would furnish the basis upon which the assessment order is passed. If in the assessment order the turnover which a dealer has returned or which has been gathered from the books is treated as not taxable or subject to any exemption and the revising authority is of the opinion that the order in this behalf is erroneous, the Commercial Tax Officer 'would have satisfied himself that such an order was not legal or proper'." The scope of a revision under rule 14(2) of the Rules framed under the Madras General Sales Tax Act, 1939, a rule somewhat similar to section 21(2) of the "Act" again came up for consideration before a B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... normal course they should have been examined by the assessing authority, and the Commercial Tax Officer would be acting well within his jurisdiction to call upon the assessee to produce evidence to support the entries in the account books, which were considered by the Deputy Commercial Tax Officer, the assessing authority. It was not the case of the learned counsel for the petitioner that the Commercial Tax Officer took any irrelevant material into consideration, even from among the records in the assessee's possession, which it was called upon to produce. We are unable to hold that there was anything even irregular in the exercise of the jurisdiction vested in the Commercial Tax Officer by section 12 of the Act." We are in respectful agreement with the above observations. From these observations it follows that the revising authority can look into all the records which the assessing authority was required to look into. In the instant case, it was the duty of the assessing authority to find out whether the unsold stock of cotton had been sold subsequently in order to find out whether the purchases in question are "last purchases". If the assessing authority failed to do so, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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