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TMI Blog2021 (11) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... the word or was substituted by the word and But in the present case, under Section 15 (2) of the Act, the word or remains as it is in between the words cancelling the assessment and directing a fresh assessment. The Revisional Authority has not passed the reassessment order but only directed the Assessing Authority to recompute the Turnover and Tax liability regarding the RS Emulsion issue. Thus, the Additional Commissioner is empowered not only to revise the order but also to enhance or cancel an assessment, or modify an assessment or direct a fresh assessment under Section 15(2) of the Act - language employed in sub-sections (1) to (3) of Section 15 of the Act would indicate the intention of the Legislature. Everything short of a re-assessment is permissible in the circumstances of the case and if such re-assessment is warranted, the matter requires to be remanded to the Assessing Authority. There are no reason to hold that the impugned order passed by the Additional Commissioner of Commercial Taxes suffers from infirmity for lack of jurisdiction. Thus, the questions of law are answered in favour of the Revenue and against the assessee. - T.A.E.T.No.2/2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 issued by the local dealer; Further holding that the charging provisions for the purported levy of entry tax on the motor vehicle been held to be unconstitutional by this Hon ble Court. The first appellate authority set aside the said levy. 5. Subsequently, the Additional Commissioner of Commercial Taxes exercising the powers under Section 15 (2) of the Act (though issued under S.15 (1) and rectified later), issued a notice to the assessee proposing to revise the appeal order passed by the First Appellate Authority. Thus, vide order impugned dated 08.05.2020, the respondent passed the revisional order setting aside the order of the Assessing Authority, upholding the orders of the Appellate Authority except the RS Emulsion issue, further directing the Assessing Authority to re-compute the turnover and the tax liability pertaining to the turnover of RS emulsion and to levy tax in accordance with law under the provisions of the Act and further to explore the possibility of levy of interest and penalty. Being aggrieved, the assessee has preferred this appeal. 6. Learned counsel appearing for the assessee argued that the order passed under Section 15 (2) of the Act is without ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection as to the jurisdictional aspect, cannot raise a grievance, after suffering an order. It was submitted that the Additional Commissioner is empowered to pass order enhancing or modifying an assessment, or canceling an assesment or directing a fresh assessment. The Revisional Authority- Additional Commissioner of Commercial Taxes has rightly set aside the order of the Assessing Authority and directed the Assessing Authority to re-compute the Turnover and Tax liability of RS Emulsion and to levy tax accordingly, exploring the possibility of levy of interest and penalty. He further submitted that the Revisional Authority has not reassessd as canvassed by the learned counsel for the appellant-assessee. Thus, contended that the rulings of this Court in the case of Shankar Construction Co. and M/s Solidus Hi Tech (supra), are not applicable to the facts of the present case. 9. We have carefully considered the rival submissions of the learned counsel appearing for the parties and perused the material on record. 10. Section 15 of the Act deals with revisional powers, of the Commissioner of Commercial Taxes, Joint Commissioner of Commercial Taxes and Additional Commissioner of Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional aspect goes to the root of the mater and if any order is passed by the authorities without jurisdiction, it amounts to nullity. Such an issue can be raised at any belated stage of the proceedings including in appeal or in execution. 12. The arguments of the learned counsel for the assessee that these three sub-sections read differently and distinctly, thereby conferring powers on the Commissioner, Additional Commissioner and Joint Commissioner to revise the order and thereby clearly specifies the jurisdiction of the said authorities to pass orders cannot be disputed. In terms of Section 15 (1) of the Act, power is conferred on the Commissioner of Commercial Taxes to suo motu call for the records and examine the same of any proceeding under the Act which empowers him to pass orders as the circumstances of the case justify, including an order enhancing or modifying the assessment or cancelling the assessment. Similarly, the Additional Commissioner under sub-section (2) is empowered to call for and examine the record of any proceedings under the Act and if the order passed by the Joint Commissioner or an appellate authority of the rank of Deputy Commissioner is considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of this Court has observed that the submission canvassed by the learned Additional Government Advocate that the revisional authority does have wide powers exercisable under the Act if it is found that it is prejudicial to the interest of the Revenue deserves to be accepted. In exercise of those powers, modifications are permissible, and if the revisional authority finds that the assessment is required to be redone, such a direction can still be issued to the Assessing Authority, but it is not permissible for the Revisional Authority to step into the shoes of Assessing Authority and to redo the assessment or to pass a fresh assessment order. The Revisional Authority can only direct re-assessment to be done by the Assessing Authority. 15. Similarly, in the case of M/s Solidus Hi Tech (supra), while considering the powers of the Joint Commissioner under Section 63-A of the Karnataka Value Added Tax Act, 2003, the Division Bench of this Court held that if the revisional authority has passed a fresh assessment order which is not in conformity with the jurisdiction vested pursuant to the amendment with effect from 01.04.2013 in the KVAT Act whereby the word or has been substi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it has been held that the revisional authority has the power to set aside the order of the assessing authority and the appellate authority where the orders are concurrent and can also set aside any one of the orders. 18. In the case of Sree Balaji Rice Mill, Bellary .v. State of Karnataka [(2005) 4 SCC 21], the Hon ble Apex Court considering the scope of Section 22-A of the KST Act, has observed thus: 17. It must be noted that there is a difference between exercise of revisional powers over orders passed by lower authority and exercise of revisional powers in the assessment proceeding itself. A revision of an order may be confined to what the order contains or dealt with. But when the assessment proceedings themselves are before the revisional authority, it can go beyond the order of the assessing authority and pass such orders as the assessing authority could or should have passed. Thus, it is clear that the Additional Commissioner is empowered not only to revise the order but also to enhance or cancel an assessment, or modify an assessment or direct a fresh assessment under Section 15(2) of the Act. 19. The language employed in sub-sections (1) to (3) of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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