9911796707
TMI Blog1976 (4) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... ax) Act, 1941 (Act 6 of 1941) (hereinafter referred to as "the Act"), shall be disposed of by this judgment. The facts giving rise to these appeals are: The appellant which is a private limited company, incorporated under the Indian Companies Act, 1913, and is registered as a dealer under the Act submitted a return for 4 quarters ending with the last date of Chaitra, 1364 B. S. (corresponding to the period commencing with April 14, 1957, and ending with April 13, 1958), showing a gross turnover of sales of Rs. 35,93,402. By his order dated December 7, 1959, the Commercial Tax Officer, Rajakatra Charge, rejected the appellant's books of account on the ground of absence of purchase and sale vouchers and of stock statements and enhanced the gross turnover shown by the appellant by Rs. 50,000 and charged the entire enhanced amount to tax subject to deduction under section 5(2)(b) of the Act. He also imposed a penalty of Rs. 1,000 under section 11 (1) of the Act. On appeal under section 20(1) of the Act, the Assistant Commissioner, Commercial Taxes, Burrabazar Circle, by his order dated September 10, 1960, reduced the enhancement of gross turnover from Rs. 50,000 to Rs. 25,000 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant got duplicate sets of 1,00,000 cash memos bearing serial Nos. 2850 to 29500 and 30501 to 31500 printed and supplied by M/s. Blackwoods India Limited and did not record sales to the extent of Rs. 30,00,000, which, in the absence of any evidence to the contrary, appeared to be entirely taxable. This report was received by the Additional Commissioner, Commercial Taxes, while the aforesaid revision petition was still pending before him. He, thereupon, gave the following notice to the appellant: "On discovery of fresh materials, as reported by the Commercial Tax Officer, Central Section, in his report dated December 27, 1960 (copy enclosed), it appears that you have suppressed sales estimated to be Rs. 30,00,000 in respect of the assessment of four quarters ending Chaitra, 1364 B. S. The above revision petition which has been filed before me is against the appellate order in respect of the assessment for the said period...... It also appears that sales to the extent of Rs. 30,00,000 (estimated) escaped taxation from the original assessment and consequently from the Assistant Commissioner's appellate order. The above revision petition will be heard by me on October 5, 1961, at 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the petitioner by taking into consideration additional material which had not been made available to the assessing officer." The appellant did not rest content with this limited reference and made an application under sub-sections (2)(b) and (3) of section 21 of the Act to the High Court, which directed the Board to submit for its decision the following further question of law: "Whether, on the facts admitted or found by the Tribunals below, the Additional Commissioner of Commercial Taxes was vested with the authority or jurisdiction, under sub-section (3) of section 20 of the Bengal Finance (Sales Tax) Act, 1941, read with rule 80A of the Rules framed thereunder to admit or rely on the purported report dated December 27, 1960, of the Commercial Tax Officer of the Central Section, pursuant to the enquiry, under sub-section (1) of section 14 of the said Act, initiated long before the filing of the revision petition in question by the petitioner before the Com- missioner of Commercial Taxes, West Bengal. " The Board thereupon referred the above-quoted second question of law as well to the High Court for its decision. After hearing the appellant and the revenue, the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Commissioner in respect of such assessment.......... (5) Before any order is passed under this section which is likely to affect any person adversely, such person shall be given reasonable opportunity of being heard." The section as extracted above is very widely worded. The word "revise" occurring therein, which, in dictionary, is described as meaning to "re-examine, to review, to correct, or to amend the fault" is not hedged or qualified by any condition or limitation. The controlling expressions like "for the purpose of satisfying himself as to the legality or propriety of the order passed" or "regularity of the proceeding", which are susceptible of being construed as restricting the revisional power to rectification of an illegality or impropriety of the order or of irregularity in the proceeding are also not to be found therein. There is also nothing in the Bengal Sales Tax Rules, 1941 (hereinafter called "the Rules"), to circumscribe or limit the power. It is not, therefore, unreasonable to infer that the amplitude of the power conferred on the Commissioner or the Additional Commissioner is more extensive than the power exercisable by the High Court under section 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are safeguarded by the exercise of such supervisory jurisdiction as the one given to the authorities abovementioned." Thus the Commissioner or the Additional Commissioner can, in exercise of his revisional power, reassess the turnover and while doing so rope in escaped items of turnover and thereby enhance the gross turnover. Having found that the power of revision exercisable by the Commissioner, Commercial Taxes, is not trammelled by any limitation, let us now see whether the Commissioner while exercising the revisional power is confined to the order of assessment and the record of proceedings of the assessing officer or can he travel outside the same and reassess the gross turnover by taking additional material into consideration. The following observations made in the majority judgment of this court in State of Kerala v. K. M. Cheria Abdulla & Co. [1965] 16 S.T.C. 875 (S.C.)., are helpful in deciding this matter: "The words of section 12(2) of the Madras General Sales Tax Act, 1939, that the Deputy Commissioner 'may pass such order with respect thereto as he thinks fit' means such order as may in the circumstances of the case for rectifying the defect be regarded by him a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular case before it. When exercising such powers, there is no reason why the authority should not be entitled to hold an enquiry or direct an enquiry to be held and, for that purpose, admit additional material. The proceedings for revision, if started suo motu, must not, of course, be based on a mere conjecture and there should be some ground for invoking the revisional powers. Once these powers are invoked, the actual interference must be based on sufficient grounds and, if it is considered necessary that some additional enquiry should be made to arrive at a proper and just decision, there can be no bar to the revising authority holding a further enquiry or directing such an enquiry to be held by some other appropriate authority. This principle has been clearly recognised by this court in State of Kerala v. Abdulla and Company [1965] 16 S.T.C. 875 (S.C.).." The decisions of this court in Deputy Commissioner of Agricultural Income-tax and Sales Tax, Quilon v. Dhanalakshmi Vilas Cashew Co.[1969] 24 S.T.C. 491 (S.C.)., State of Kerala v. M. Appukutty [1963] 14 S.T.C. 242 (S.C.)., and Commissioner of Income-tax, Bombay v. Shapoorji Pallonji Mistry [1962] 44 I.T.R. 891 (S.C.)., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les and deliveries of goods by, any dealer; and (b) all goods kept in any place of business of any dealer shall at all reasonable times be open to inspection by the Commissioner. (3) If the Commissioner has reason to suspect that any dealer is attempting to evade payment of any tax under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of the dealer as may be necessary, and shall grant a receipt for the same, and shall retain the same only for so long as may be necessary for examination thereof or for a prosecution.............." "Rule 80A. The appellate or revisional authority may, before finally disposing of the matter, make such inquiry or cause such inquiry to be made by such officer as it may think fit." A combined reading of the provisions of section 20(3) of the Act and rule 80A of the Rules would show that the Commissioner, Commercial Taxes, is empowered to make or cause to be made such enquiry as he may think fit for proper exercise of the revisional jurisdiction conferred on him under section 20(3) of the Act. It would be further noticed that the Commissioner can, under section 14 of the Act, call upon any dealer to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
