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TMI Blog2003 (2) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... ed tax on a turnover of Rs. 18,46,370, which relates to publicity and advertisement expenditure. Aggrieved by the same, the appellant herein, preferred an appeal before the Appellate Commissioner, Guntur. The Appellate Commissioner allowed the appeal on the ground that the assessing authority was wrong in assessing the advertisement expenditure to levy tax, treating it as part of the sale price. Further, the order of the appellate authority was sought to be reviewed by the Additional Commissioner (CT) by issuing a show cause notice dated March 12, 1993 under section 20(1) of the APGST Act (for brevity "the Act"). However, after perusing the reply filed by the appellant the Revisional Authority (Additional Commissioner, CT-cum-Joint Commissioner, Legal) agreed with the view taken by the appellate authority holding that the publicity and advertisement expenditure collected from the customer (dealer) do not form part of the turnover and dropped the proceedings by its order dated April 21, 1993. 3.. While so, again a show cause notice dated October 3, 1994 was issued in respect of the same matter by the Commissioner, Commercial Taxes purporting to be while exercising the powers und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the same section of law, i.e., section 20(1) of the APGST Act read with rule 44-A of the APGST Rules, 1957 (for brevity "the Rules") treating the Additional Commissioner as his subordinate as on April 21, 1993. 6.. The learned counsel for the appellant submits that the Additional Commissioner of Commercial Taxes was not subordinate to the Commissioner of Commercial Taxes, and as such, the order of Revision passed by the Additional Commissioner of Commercial Taxes while exercising his powers under section 20(1) of the Act, cannot be revised again by the Commissioner of Commercial Taxes while invoking his powers vested under section 20(1) of the Act. 7.. On the other hand, the learned Special Government Pleader for Taxes submits that the Commissioner of Commercial Taxes has got powers under section 20(1) of the Act to revise even the order passed by the Additional Commissioner of Commercial Taxes under section 20(1) of the Act, as both the authorities have been vested with powers under section 20(1) of the Act and the Additional Commissioner of Commercial Taxes being subordinate to the Commissioner under rule 44-A, the Commissioner of Commercial Taxes was right in exercising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding Appellate Deputy Commissioners, assistant Commissioners, commercial Tax Officer, Deputy Commercial Tax Officers and Assistant Commercial Tax Officers. 1 [Additional Commissioner of Commercial Taxes (Legal) or Joint Commissioner of Commercial Taxes (Legal)] 3. Assistant Commissioners, Commercial Tax Officers, Deputy Commercial Tax Officers and Assistant Commercial Tax Officers. Deputy Commissioner (Commercial Taxes) of the division concerned. 2 4. Commercial Tax Officers, Deputy Commercial Tax Officers and Assistant Commercial Tax Officers. Assistant Commissioner of the division concerned. 5. Deputy Commercial Tax Officers and Assistant Commercial Tax Officers Commercial Tax Officers of the area concerned." 9. From the above table under rule 44-A, it is seen that the Additional Commissioner who exercised his powers under section 20(1) of the Act has been made subordinate to the Commissioner of Commercial Taxes. This was introduced through G.O.Ms. No. 788, Revenue Department, dated September 21, 1996. 10. Whereas under section 20(1) of the Act, the Commissioner is vested with suo motu powers to call for and examine the records, any order passed by any authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners of Commercial Taxes" were inst. In the marginal heading and in section by Act No. 27 of 1996 w.e.f. 1-10-1993 and by Act No. 8 of 1997 made effective from 19-11-1991. 2. Ins. by Act 20 of 1961 w.e.f., 8-6-1961. 3. Ins. by Act 16 of 1963 w.e.f., 1-8-1963. 4. Ins. by Act 18 of 1985 w.e.f., 1-7-1985. was introduced from July 1, 1985. The definition of Additional Commissioner was sought to be introduced in 1996, w.e.f. November 19, 1991, as per section 4 of the Act. But the Additional Commissioner, was not a subordinate till November 21, 1996 to the Commissioner of Commercial Taxes. 12.. The special Government pleader for Taxes argued that the Additional Commissioner being a subordinate to the Commissioner as per rule 44-A of the APGST Rules, 1957, the Commissioner can revise the orders passed by the Additional commissioner under section 20(1) of the APGST Act as per the powers vested in him under section 20(1) of the Act. 13.. Generally speaking, an Additional Commissioner is nothing but in addition to the Commissioner he is supposed to exercise all the powers vested in the Commissioner as conferred on him under the Act, and as such, the State Government may confer on h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inserted to sub-section (2) of section 20 of the Act in 1997 with retrospective effect, i.e., November 19, 1991 as the rule 44-A was amended only w.e.f., September 21, 1996 making the Additional Commissioner subordinate to the Commissioner of Commercial Taxes. Thus, during the interregnum period, though the definition of Additional Commissioner was inserted in 1997, with retrospective effect from November 19, 1991 he was not made subordinate to the Commissioner with retrospective effect till September 21, 1996 as to his authority under section 20(1) of the Act. 17.. When the order passed by the Additional Commissioner on April 21, 1993, while exercising powers vested under section 20(1) of the Act, he cannot be called to be a subordinate to the Commissioner of Commercial Taxes under section 20(1) of the same Act, as the doctrine of subordination insofar as making the Additional Commissioner subordinate to the Commissioner was not there. Thus, the order passed by the Commissioner purported to be while exercising his powers vested under section 20(1) of the Act in CCT's Ref. No. LV (2)/1845/94, dated January 8, 1996 is without jurisdiction, arbitrary and illegal and the same is li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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