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TMI Blog2018 (5) TMI 1395X X X X Extracts X X X X X X X X Extracts X X X X ..... r the particular year within three years of the date of the order so as to enable him to exercise the revisional powers. In fact, looking to the tenor of the notice of revision it was not even possible for him to have done so. This is because the order of assessment was passed on 30.03.2013. Period of limitation would therefore expire on 30.03.2016 - the action of the Additional Commissioner calling for the record of the assessment and issuing notice for revision is beyond the period of limitation prescribed. Clause (a) of subsection (1) of section 67 of the Gujarat Sales Tax Act made pari materia provisions concerning the revisional powers of the Commissioner. Under the said section also, the Commissioner is empowered to call for and examine the record of any proceedings of the subordinate officer suomotu within three years or on an application made to him for such purpose within one year from the date of the order passed by such officer. Reliance can be placed in the case of Om Metals & Minerals Ltd. v. Assistant Commissioner of Sales Tax (Appeals) [2011 (4) TMI 1025 - GUJARAT HIGH COURT], where it was held that the impugned notice has clearly been issued after the expiry o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT Act' for short). According to the department, when the input happens to be fuel, this reduction of tax credit of 4% should be applied twice. The petitioner contends that the reduction in terms of section 11(3)(b) can apply only once and not again. This issue through the appeal route had travelled to the High Court. The High Court by a judgment in case of State of Gujarat v. Reliance Industries Limited reported in [2013] 58 VST 376 (Guj) held that the legislature intended to limit the tax credit only once. Even if the input happens to be fuel, such reduction cannot be applied twice. The department carried the judgment of the High Court to the Supreme Court. In case of State of Gujarat v. Reliance Industries Limited, reported in 2017 (12) Scale 75, the Supreme Court allowed the appeal of the Government. The Supreme Court by reversing the judgment of the High Court, held and observed as under: 19) The upshot of the aforesaid discussion would be to hold that reduction of 4% would be applied whenever a case gets covered by subclause (ii) and again when subclause (iii) is attracted. 20) This, however, would be subject to one limitation. In those cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision on an application) within four months from the date of the communication of the order may call for and examine the record of any such order, and pass such order thereon as it thinks just and proper. ( 2) Where an appeal lies under section 73 and no appeal has been filed, no proceedings in revision under this section shall be entertained upon application: Provided that the proceedings in revision may be entertained upon an application where the applicant satisfies the Commissioner that he had sufficient cause for not preferring an appeal against the order in respect of which an application for revision is made. ( 3) No order shall be passed under this section which adversely affects any person, unless such person has been given reasonable opportunity of being heard. ( 4) Where the Commissioner or the Tribunal rejects any application for revision under this section, the Commissioner or, as the case may be, the Tribunal shall record the reasons for such rejection. 6. In terms of clause( a) of subsection (1) of section 75 thus, the Commissioner has revisional powers which can be exercised on his own motion or under an application made to him for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as noted hereinabove has been made on 31 st March, 1998 and the impugned notice has been issued on September 25, 2001 which is clearly beyond a period of three years from the date of the said order. Section 67 of the Act inter alia lays down that the Commissioner on his own motion within three years from the date of order passed by any officer appointed under section 27 to assist him, may call for and examine the record of any such order and pass such order thereon as he thinks just and proper within 12 months from the date of service of notice of revision. In the facts of the present case, the impugned notice has clearly been issued after the expiry of the period of three years from the date of the order sought to be revised, that is, the period of limitation prescribed under clause (a) of subsection (1) of section 67 and as such, the same is apparently barred by limitation. 9. In case of M/s Tiger Steel Engineering (I) Pvt. Ltd. v. State of Gujarat (GH) vide judgment dated 06.04.2016 passed in Tax Appeal No.38 of 2007, the Division Bench once again in the context of the provisions of section 67 of the Sales Tax Act, observed as under: 10. From the language emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act provides limitation of three years by the revisional authority to exercise the revisional power. In the present case, the revisional authority exercised the powers after a period of 3 years i.e. beyond the period prescribed under Section 75 of the Act. Under the circumstances, the learned tribunal has rightly allowed the Revision Application preferred by the respondent and has rightly quashed and set aside the order passed by the revisional authority cancelling the certificate of entitlement as the revisional authority exercised the powers beyond the period prescribed under Section 75 of the Act. No error has been committed by the learned tribunal in quashing and setting aside the order passed by the revisional authority. Even otherwise, even on merits also, the issue is covered against the revenue in light of the decision of the Division Bench of this Court dated 22, 29/07/2016 passed in Tax Appeal No.444/2015 by which the Division Bench has held that the authority has no jurisdiction to cancel the certificate of entitlement retrospectively. Under the circumstances and even on merits also, the order passed by the revisional authority cancelling the certificate of the entitle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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