TMI Blog1989 (2) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... of fertilizers within the State. Hence he exercised the power under section 14 of the A.P. General Sales Tax Act, 1957 (hereinafter referred to as "the Act") and by the order dated 10th January, 1980, he reassessed the said turnover, and tax on the same was demanded by holding that exemption or deduction in regard to the above turnover was wrongly granted. The order dated 10th January, 1980 was passed under section 14(4)(cc) of the Act and it was confirmed in appeal by the Assistant Commissioner (C.T. Appeals), Hyderabad. Section 14(4)(cc) had come into effect on 17th January, 1978. The Sales Tax Appellate Tribunal held that section 14(4)(cc) of the Act had no retrospective effect and hence it could not be invoked in respect of assessments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C 445 (AP) the assessment order for the assessment year 1973-74 was passed prior to 24th January, 1977. The assessing authority issued a show cause notice to the assessee that he proposed to assess some portions of the turnover which escaped assessment and the assessee was directed to file objections if any on 24th January, 1977. The said notice was issued by invoking the provisions contained in section 14(4). Therein it was found during the assessment proceedings of the purchasers from the assessee that sales of cotton yarn by the assessee were last sales within the State and hence the earlier exemption on the ground that they were not last sales within the State was erroneous. Therein it was observed that when exemption was wrongly grante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lows: "In any of the following events, namely, where the whole or any part of the turnover of a business of a dealer has escaped assessment to tax, or has been under-assessed or assessed at a rate lower than the correct rate, or where the licence fee or registration fee has escaped levy or has been levied at a rate lower than the correct rate, the assessing authority may, after issuing a notice to the dealer, and after making such enquiry as he may consider necessary by order, setting out the grounds thereof- (a) determine to the best of his judgment the turnover that has escaped assessment and assess the turnover so determined; (b) assess the correct amount of tax payable on the turnover that has been under-assessed; (c) assess a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed as held in Sri Balaganesh Textiles v. Commercial Tax Officer [1978] 41 STC 445 (AP). So when a case of granting of exemption or deduction wrongly made comes within one or the other of the above two events mentioned in body of section 14(4) then it has to be held that the correct amount of tax payable on turnover in regard to which exemption or deduction was wrongly granted, can be assessed either under section 14(4)(a) or 14(4)(b) of the Act. So it has to be held that section 14(4)(cc) is merely clarificatory, and even without the incorporation of such a provision, the concerned authority had the power to assess the correct amount of tax payable in a case where exemption or deduction was wrongly granted. Hence this point is held in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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