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2023 (2) TMI 656 - MADRAS HIGH COURTScope of assessment - Reassessment of entire turnover or fresh assessment of escaped turnover - power of review - Exemption from sales tax - export sales - purchase of raw skins for export - revised assessment under Section 16 of the TNGST Act, 1959 for the turnover of the year 1988-1989 or not - HELD THAT:- The Division Bench in Ekambareeswarar Coffee and Tea Works case [1991 (2) TMI 359 - MADRAS HIGH COURT] has held that it would be a travesty of law to hold that the orders made under section 16(1)(a) of the Act had set aside the original orders of assessment, which were not even under consideration referred to or included in the order under section 16(1)(a) of the Act. The order of refund of tax, already paid on the basis of the original order of assessment is, therefore, erroneous and cannot be sustained. The said observation has been made after considering the tenor of the re-assessment order passed under Section 16 of the Act. In the said case, the Division Bench has taken note of the language used in Section 16(1)(a) and 16(1)(b) as well as the various interpretations of the Courts, making it clear that Section 16(1) (a) deals with assessment of escaped turnover, whereas Section 16(1)(b) deals with re-assessment of the turnover not only escaped assessment, but also improperly assessed. In case of assessment on escaped turnover in exercise of power under Section 16(1)(a), reflection of the original order of assessment is not required even if the authority chooses to pass a composite order by including the assessment year relating to escaped turnover. If the tax liability already determined in the original assessment proceedings, it can be bodily lifted and added to the order under Section 16(1)(a) of the Act. Admittedly, the right to challenge the disallowance of exemption has not been availed. When the appeal preferred and remedy exhausted against the original order, it will be preposterous to confer the said right in the subsequent assessment on the escaped turnover alone, only because the subsequent order passed under Section 16(1)(a) of the said Act has also incorporated the earlier assessment order, merely for the sake of completeness. Unless the entire turnover is re-assessed in exercise of power under Section 16 (1) (b) of the said Act, the subsequent Appellate Authority cannot substitute his view contrary to the assessment regarding the turnover which has reached finality. Such substitution will amount to review of the earlier order. The power which the assessing authority thus exercises under Section 16(1)(a) of the Act is neither the power of revision nor the power of review. From the assessment order, dated 31.03.1995, it is found that it is not reassessment of entire turnover. It is assessment made in exercise of power under Section 16(1)(b) of the said Act, but only a fresh assessment regarding the escaped turnover in exercise of power under Section 16(1)(a) of the TNGST Act, 1959. Appeal dismissed.
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