TMI Blog1991 (4) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... preciate that the turnover of Rs. 1,84,985 was allegedly the escaped turnover, which was neither part of the return nor of the book sales or even the subject-matter of the appeal before the appellate authority, and the Joint Commissioner could not, in exercise of the powers under section 34 of the Act bring to tax, for the first time, the alleged escaped turnover while exercising suo motu revisional powers. Secondly, it was argued that the order of the Joint Commissioner was barred by limitation prescribed under section 16 of the Act to bring an escaped turnover to tax. 3.. With a view to appreciate the preliminary objections, a short reference to the facts of the case is necessary. The appellant was assessed on a total and taxable turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e exercised by the Joint Commissioner to pass an order relating to an escaped turnover specifically dealt with under section 16 of the Act? 5.. Section 34 of the Act reads: "Special powers of Joint Commissioner of Commercial Taxes.-(1) The Joint Commissioner of Commercial Taxes may, of his own motion, call for and examine an order passed or proceeding recorded by the appropriate authority under section 4-A, section 12, section 12-A, section 14, section 15 or sub-section (1) or (2) of section 16 or an order passed by the Appellate Assistant Commissioner under sub-section (3) of section 31 or by the Deputy Commissioner under sub-section (3) of section 31-A or sub-section (1) of section 32 or sub-section (3) of section 33 and if such order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period referred to in clause (c) of sub-section (2), the time during which the proceedings before the Joint Commissioner of Commercial Taxes remained stayed under the order of a Civil Court or other competent authority shall be excluded." Though this section has Undergone a number of amendments, for the question under consideration, we need not detain ourselves to consider the This section is as it stands after amendment by the Tamil Nadu General Sales Tax (Second Amendment) Act, 1982 w.e.f. 1st November, 1982.-Ed. amendments. On its plain meaning, the section confers on the Joint Commissioner or the Board, powers of suo motu revision. This section authorises the Joint Commissioner to find out whether the order of the appellate authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pass such an assessment order." 6.. The first preliminary objection, therefore, must succeed and we hold that the Joint Commissioner exceeded his powers while exercising jurisdiction under section 34 of the Act to bring to tax the alleged escaped turnover, for the first time when it was neither the subject-matter of assessment proceedings nor the appellate proceedings, in exercise of the revisional powers under section 34 of the Act. 7.. Even the second preliminary objection, according to the learned counsel for the appellant has been answered by the same Division Bench in Velayutha Raja v. Board of Revenue (C.T.) [1970] 26 STC 176 (Mad.). Dealing with the powers of the Board of Revenue, now exercisable by the Joint Commissioner under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October, 1978. Inspection which led to the discovery of the alleged debit notes regarding replacement of parts by the manufacturers, thereby bringing to light the escaped turnover of Rs. 1,84,985 was on 17th of July, 1980. Notice under section 34 of the Act was issued to the assessee on 21st of October, 1981. To bring an escaped turnover to tax, section 16 provides that the assessing authority may act at any time within a period of five years from the expiry of the year to which the tax relates. The assessing authority could, therefore, act to bring the alleged escaped turnover to tax till the end of 1980 and even the assessing authority could not start the proceedings to bring the escaped turnover to tax on 21st of October, 1981, when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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