TMI Blog2004 (6) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... authority while framing the original order for the assessment years 1986 to 1994, had exempted the turnover pertaining to the packing materials wherever they had suffered local taxes earlier and had levied taxes as applicable to the packing materials. 3.. The assessing authority having entertained a doubt, and opining that the turnover of the dealer in respect of the assessment years in question had been assessed at a lower rate than the rate at which it is assessable under the Act, had initiated proceedings under section 12-A of the Act to recompute the escaped turnover. The assessee instead of filing any objections to the proposal made in the show cause notice issued by the assessing authority had approached this Court, inter alia, contending, apart from others, that the jurisdiction of the authority to initiate the proceedings under section 12-A of the Act to bring to tax the assessed turnover and also had questioned the validity or otherwise of section 5(3-D) of the Act, which provided the same rate of tax on containers and contents. The said petition came to be rejected by this Court following its earlier decision in the case of Ranganatha Associates v. State of Karnatak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the apex Court in Premier Breweries' case [1998] 108 STC 598 has revised the order of assessment passed by the assessing authority following the directions and guidelines issued by the apex Court in Vasavadatta Cement's case [1996] 101 STC 168 on the ground that the orders of assessment passed by the assessing authority are erroneous and prejudicial to the interest of the Revenue and further not in conformity with the law laid down by the apex Court in Premier Breweries' case [1998] 108 STC 598. 6.. Aggrieved by the order passed by the revisional authority, the assessee had filed appeals before the Karnataka Appellate Tribunal in STA Nos. 860-867 of 1998. The Tribunal has allowed the appeals and has set aside the order passed by the revisional authority in revising the order of assessment framed by the assessing authority for the assessment years 1986-87 to 1993-94. It is the correctness or otherwise of the order passed by the Tribunal that is the subjectmatter of these revision petitions. 7.. Sri B. Anand, learned Government Advocate appearing for the revenue would submit, that the revisional authority following the dicta laid down by the apex Court in Premier Breweries' case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the parties. The assessing authority, following the directions issued by the apex Court has passed fresh assessment orders for the assessment years in question. Now the question that requires to be considered and decided by this Court is, whether the revisional authority is justified in revising the order of assessment passed by the assessing authority for the assessment years in question, on the ground that the assessment orders are erroneous and prejudicial to the interest of the Revenue and not in conformity with the law laid down by the subsequent decision of the apex Court in Premier Breweries' case [1998] 108 STC 598, in a case where the assessment orders were passed following the directions and guidelines issued by the apex Court. 10.. To answer the issue raised by us for our consideration and decision, omitting what is not necessary, the provisions of section 21 of the Act requires to be noticed. Therefore, the said section is extracted as under: 21.. Revisional powers of Joint Commissioners.-(1)...... (2) The Joint Commissioner may of his own motion call for and examine the record of any order passed or proceeding recorded under the provisions of this Act by any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt from the record as a consequence of which the lawful revenue due to the State has not been realised, so on and so forth. 12.. Keeping in view the scope of revisional jurisdiction of the revising authority under section 21 of the Act, let us now notice the fact-situation in the instant case. The respondent/dealer herein had not only questioned the order of reassessment passed by the assessing authority before the Supreme Court but also the constitutional validity or otherwise of section 5(3-D) of the Act. The apex Court was pleased to allow the civil appeal and was further pleased to direct the assessing authority to pass fresh order for the assessment years in question, after investigation into the facts and further determining what were the ingredients of the contract and intention of the parties. The assessing authority, has faithfully followed the directions issued by the Supreme Court and has completed the assessment proceedings. The directions issued by the apex Court are binding on the assessing authority and the same requires to be obeyed by him in view of article 141 of the Constitution of India. The revisional authority either in his show cause notice issued und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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