Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2019 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1634 - MADRAS HIGH COURTJurisdiction - Invocation of revisional power by Joint Commissioner - TNGST Act - HELD THAT:- The Joint Commissioner has erred in invoking the revisional power to bring to tax the aforesaid items of receipts, either receipts for the job work or the receipts for designing the moulds for manufacturing of pet bottles for the specified customers, as taxable turnover in the hands of the Assessee. Even though the Assessee was engaged in the business of manufacture and sale of pet bottles (plastic bottles), but it is only the bottles manufactured from its own raw materials and sold in general market could be taxed in the hands of the Assessee as the taxable turnover. The receipts for the job work of converting the raw materials from plastic into pet bottles in a specified size or design for other customers is not a taxable turnover in the hands of the Assessee. Even though the learned counsel for the Revenue submitted before us that at the time of inspection, these moulds were not produced for verification, he was unable to support the said stipulation made in the show cause notice given by the revisional authority with the help of any document or certain report that the further verification of the inspection report by the enforcing authority by producing him in cross-examination of the Assessee during the course of revisional proceedings - nothing as a fact was proved against the Assessee that all the moulds were not available with the Assessee for verification. Thus, the revisional authority has not correctly invoked his revisional jurisdiction in this matter, under Section 34 of the Act, which empowers him to call for and examine an order passed by the Appellate Assistant Commissioner - The discretionary power given under Section 34 of the Act to the revisional authority is wide and therefore, the said discretionary power has to be exercised with a great amount of circumspection, but the reason for invoking such revisional power should be based on the relevant materials and such materials should inspire confidence when the reasons are examined by the appellate forum or Constitutional Courts. Petition allowed.
|