TMI Blog2001 (3) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Taxes (Assessments) for the assessment years 1988-89, 1989-90 and 1990-91 on October 4, 1993, October 5, 1993 and October 7, 1993 respectively. Various exemptions claimed by the company were examined and after disallowing part of the exemptions claimed, the assessment was completed. The assessee was aggrieved by the disallowance and preferred an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Dharwar Division, which authority allowed the exemption on some more items and effectively refused certain reliefs in the appeals. The revisional authority with whom we are really concerned examined the two orders and issued a detailed notice to the assessee. The earlier part of the notice essentially sets out various reasons why the authority is of the view that the earlier orders require to be reviewed but what follows thereafter is a little unusual for cases of this type. The revisional authority has in terms indicated that he proposes to review the earlier orders along the lines set out and strangely enough, though he was issuing a show cause notice, he has indicated to the assessee that he proposes to revise the assessment and "conclude" the same. Strange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the show cause notice the assessee was heard and the revisional authority has revised the original assessment orders precisely on the lines as set out in the show cause notice. After doing this, the authority has proceeded on the same lines as an assessing authority and has directed the assessing authority to raise the demands for tax. There is no doubt about the fact that the revisional authority has effectively done a fresh assessment. The clear question is, without going into the mechanics of whether the modalities in concluding this process were correct or not; whether fundamentally, the revisional authority had the power to do this. In other words, was it open to the revisional authority to conduct a fresh assessment assuming this was required or whether the only course open to the revisional authority having arrived at this conclusion was to remand the case to the assessing authority after setting aside the appellate order and directing a fresh assessment. 5.. Mr. S. Narayana, learned counsel who represents the appellants, did initially raise certain other issues touching the width of powers exercisable by the revisional authority when he submitted that since section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Advocate advances an interesting argument which we were required to examine very meticulously. First of all, he submitted that while issuing the show cause notice if the officer has been meticulous enough to set out what according to him are the errors/defects or the grounds on which the earlier orders require modification, that the officer has followed the correct procedure and requires to be complemented as against most other situations where cryptic show cause notices are issued without conveying to the party concerned as to what is the justification for the proposed revision. As far as this submission is concerned, we wholly endorse what the learned Government Advocate has pointed out. However, he submitted that it is equally desirable to put the assessee on notice by indicating the proposed revisions and if this is done by specifically setting out figures, that again it is a healthy practice which cannot be faulted. We need to indicate here that we can only partially approve of this argument because if the revisional authority puts forward what we would prefer to define as a draft proposal for revision, it would certainly be an excellent situation where the assessee is forewar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argument canvassed was that there are no limitations to the upward/downward changes that can be made and lastly, the learned Government Advocate pointed out to us that the authority can even cancel the assessment and direct a fresh assessment. His submission was that the revisional authority is invested with such wide sweeping and omnibus powers that the appellants learned counsel was not justified in arguing that the authority is totally precluded from replacing the earlier assessment order with an entirely new one. What the learned Government Advocate submitted was that if after a thorough examination and a hearing the revisional authority which is seized of the case decides that drastic modifications are required, that it is purely academic, totally unnecessary and in fact contra indicated to merely record findings with detailed revision as required possibly indicating the reasons therefor and to then go through the exercise of a remand than for the assessing authority itself to complete the exercise. Interestingly enough, the learned Government Advocate pointed out to us that apart from sending the litigation in circles which is also undesirable because there is every possibili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the case will have to be remanded to the assessing authority. There is ample justification for upholding the submissions canvassed by Sri S. Narayana because it is quite elementary that when a fresh assessment is done there could always be grounds on which one of the parties is aggrieved and the law prescribes a corrective remedy by way of appeal, revision, etc. If the revisional authority which is a highly placed authority of the department, is to exercise the powers of doing a fresh assessment, then the right of appeal, revision, etc., is totally annihilated and this could never be the intention of the Legislature. It is therefore abundantly clear to us that the objection canvassed before us by the appellant's learned counsel is well-founded and that the same is liable to be upheld. 9.. Having regard to the aforesaid position, since this is clearly a case in which the revisional authority exceeded its jurisdiction in virtually reassessing the cases, we have no option except to set aside the revisional order, remand the cases to the assessing authority with a direction that notice be issued to the assessees, they be heard and fresh assessment orders according to law be pass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
