1970 (7) TMI 64 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of the notices issued by the Deputy Commissioner of Commercial Taxes to revise assessment orders.
2. Classification of coriander as an "oil-seed" for tax purposes under the Mysore Sales Tax Act.

Detailed Analysis:
1. The judgment dealt with four writ petitions filed by an assessee challenging notices issued by the Deputy Commissioner of Commercial Taxes to revise assessment orders under the Mysore Sales Tax Act. The Deputy Commissioner sought to reassess the turnover of coriander, previously exempted as an "oil-seed," under section 5(1) of the Act. The petitioner contended that the Deputy Commissioner exceeded his revisional powers by relying on extraneous matters and expert opinions not part of the assessment record. The court held that the Deputy Commissioner acted illegally by considering external opinions to determine the legality or propriety of the assessment orders. As the Deputy Commissioner did not establish the orders' illegality or impropriety based on the assessment records, the court quashed the notices, emphasizing the limitations on revisional powers under the Act.

2. The second issue revolved around the classification of coriander as an "oil-seed" for tax purposes. The petitioner argued that coriander met the definition of "oil-seed" under the Central Sales Tax Act and the Mysore Sales Tax Act. The Deputy Commissioner relied on an opinion from the Head of the Division of Genetics, I.A.R.I., New Delhi, stating that coriander should not be classified as an oil-seed due to its predominant use as a spice. The court highlighted that the assessing authorities are competent to determine if coriander qualifies as an "oil-seed" based on factual assessments, such as oil content and usage. However, the court emphasized that opinions from external sources cannot dictate the classification of coriander as an "oil-seed" under the Act. The court concluded that the Deputy Commissioner's reliance on the external opinion was illegal, leading to the quashing of the notices to reassess coriander turnover. The judgment clarified the distinction between factual assessments by authorities and external opinions in determining the tax classification of goods under the Mysore Sales Tax Act.