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TMI Blog2025 (4) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... factory at Ponneri and registered office at Chennai. During the years 1995-96 and 1996-97, petitioner had consignment agents in Bangalore. The matter at hand relates to assessment year 1996-97. During the said assessment year, petitioner's returns were assessed and an assessment order dated 26.11.1998 came to be passed, accepting petitioner's claim for exemption on a turnover of Rs. 64,99,960.88 as relating to consignment sales effected through agents outside the State. 2. The relevant portion of the assessment order reads as under: "Item No.(2): The dealers have claimed exemption on a turnover of Rs. 64,99,960.88 as relating to consignment sales effected through their agents in outside the State. They have filed the following records in support of their claim for exemption. 1. 'F' forms 2. Copy of Agreement 3. Copies of sale pattials 4. Copies of Lorry receipts The above records have been verified. In all these cases the goods viz. M.S. Ingots were sent to their Agent at bangalore in a routine manner for sales on consignment basis at the other end. The agents have rendered sale pattials showing the details of sales and incidental expenses incurred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mehta Corpn. Industries verses State of Haryana. The movements of the goods have been occasioned as an incidence of contract of sales already entered into with the buyer at the other end and thereby the Inter-state sale under section 3(a) of the CST Act has been camouflaged as consignment sale under section 6A of the CST Act. In view of the above, it is proposed to revise the assessment of the dealers for the year 1996-97 under the CST Act'56 u/s 16 of the TNGST Act read with sec 9(2) of the CST Act by refixing the total and taxable turnover as follows:- Taxable Turnover already determined .. Rs. 30,228-00 ADD Consignment sales now disallowed .. Rs.64,99,961-00 Taxable T.O. proposed to be refixed .. Rs.65,30,189-00 ADD To eligible for exemption on High sea sales .. Rs.33,89,909-00 Total Turnover proposed .. Rs.99,20,098-00 The taxable turnover of Rs. 65,30,189-00 is proposed to be re-assessed at the following rates: 1. Rs. 30,228-00 at 4% 2. Rs. 64,99,961-00 at 8% 65,30,189-00 It is also proposed to levy appropriate penalty of the difference of tax assessed on revision and that tax already paid, u/s 16 of the TNGST Act read with sec 9(2-A) of the CST Act& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing an appeal before the Appellate Assistant Commissioner (CT), Kanchipuram (respondent No.4). By a detailed order dated 18.11.2002, petitioner's appeal was allowed. Respondent No.4 observed that during the assessment proceedings, petitioner had submitted all details and documentary evidence in connection with the consignment sales effected by them and relying on the documents filed during the assessment proceedings, the assessment order came to be passed. Respondent No.4 has made an observation that there was no evidence to prove the allegations made by respondent No.5 in the show cause notice to treat the transaction as one of inter-state sale. Respondent No.4 has observed that the conclusion of the Assessing Officer was based on mere surmises and guesses and the same was not supported by any materials on record. Respondent No.4 concluded that the entire transactions are only consignment transfer eligible for exemption under the provisions of the CST Act, 1956. 7. Revenue preferred an appeal against this order dated 18.11.2002 before the Tamil Nadu Sales Tax Appellate Tribunal, which is joined as respondent No.3 and in our view, it was not required to be joined as a respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides who all could be appointed as Members. That does not make a High Court inferior to the Appellate Authority. All decisions of the said Appellate Authority, which are creatures of statute, shall be subject to scrutiny under jurisdiction conferred upon the High Courts under Article 226/227 of Constitution of India. 11. The Supreme Court in Columbia Sportswear Company v. Director of Income Tax, Bangalore (2012) 346 ITR 161 (SC), held that the order passed by the Appellate Authority for Advance Rulings (Income-tax) can be challenged before the High Court under Article 226 and/or 227 of the Constitution of India. 12. Also in Union of India v. Parashotam Dass (2023) 3 SCR 598, the Apex Court held that the self-restraint of the High Court under Article 226 of the Constitution is distinct from putting an embargo on the High Court in exercising this jurisdiction under Article 226 of the Constitution while judicially reviewing a decision arising from an order of the Tribunal. 13. In paragraph 101 of the judgment of the Apex Court in L.Chandrakumar v. Union of India (1997) 105 STC 618 (SC), a Constitution Bench of the Apex Court has held that the power vested in the High Courts to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are found to be writ with fraud, collusion or misrepresentation or suppression of material facts, on a mere change of opinion, the findings by themselves would not go for any disturbance under Section 16 of the Act. Importantly, the Apex Court also held that discovery of new materials although may form a ground, by itself, it would not be a ground for re-opening of proceedings unless such discovery indicates a jurisdictional error. 17. Paragraphs 61 and 94 in Ashok Leyland Limited (supra) read as under: "61. ... If through the means of a legal fiction it is determined that this is not an inter-State sale, then it amounts to a transfer of stock. This finding is made by a statutory authority who has the jurisdiction to do so and there is no provision for appeal. Therefore, the order made by such authority is conclusive in that it cannot be reopend on the basis that there had been a mere error of judgment. It also cannot be reopened under another statute, for examples, the Sales Tax Act of the State concerned, when the order had been made under the Central Act. Section 9(2) of the Act is subject to the other provisions of the Act which would include sub-section (2) of section 6-A o ..... 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