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2020 (12) TMI 63 - HC - VAT and Sales TaxValidity of assessment order - Forfeiture of sales tax charged erroneously - error apparent on the face of record or not - appeal dismissed on the ground that there is neither any illegality nor any impropriety in the order passed by the revisional authority and invoking powers under Section 63-A of the Act - HELD THAT:- Admittedly, the sales have been made in the course of import and therefore, the transaction in question is not exigible to tax under the Act as the same is covered under Section 5(2) of the CST Act. Article 286(1)(b) of the Constitution of India provides that no law for State shall impose or authorize the imposition of tax on supply of goods or of services or both where such supply takes place in the course of import of goods or services or both into, or export of goods or services or both out of territory of India. Thus, the levy of Value Added Tax under the Act on the goods which were sold during the course of import was clearly outside the purview of the Act. This was an error apparent on the face of the record. Even though, the assessing officer has referred to Section 39(1) of the Act, however, in substance, the Assessing Officer has exercised the powers under Section 69(1) of the Act, which deals with rectification of the mistake. Section 69(1) of the Act empowers the prescribed authority, assessing authority or revisional authority to rectify any mistake apparent from the record. Since, the levy of tax under the Act on the sale of goods during the course of import was an error apparent on the face of the record, the Assessing Officer in purported exercise of powers under Section 69(1) of the Act has rightly rectified the same. It is trite law that from the tenor of the order, the source of power can be traced. Therefore, merely because the Assessing Officer has referred to Section 39(1) of the Act, the same would not invalidate the order passed by the Assessing Officer. However, the revisional authority as the tribunal has failed to appreciate the aforesaid aspect of the matter. The tribunal has decided the question of law involved in the revision before it erroneously. The order of AO is restored - revision disposed off.
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