TMI Blog2024 (2) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal and revision and marked the boundaries within which revisional jurisdiction is to be exercised. What becomes apparent from a reading of the aforesaid judgment is that legislature s conferment of the right to appeal in one instance and the discretionary remedy of revision in another. This implies the creation of two distinction jurisdictions, differing in scope and content. While appeal typically entails a comprehensive review encompassing both law and fact initiated by an aggrieved party, revision is akin to a power of superintendence, sometimes invoked even without the party s initiative. The extent of revisional jurisdiction is circumscribed by the statue conferring such authority, generally aimed to ensuring conformity to legal principles and procedural propriety. Appeal can be seen as a judicial examination seeking the reversal of a lower authority s decision by the superior court. Meanwhile, revision empowers the superior court to scrutinize the records of an appeal to assess its legality, propriety, or regularity of procedure, and to issue orders accordingly. Revisional jurisdiction, as envisaged under the UPVAT Act, 2008, is meticulously tailored to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Philips India Ltd. FACTS 2. The factual matrix of the instant lis has been delineated below: a. Opposite Party is in the business of manufacture and sale of cigarettes, tea leaves, pan masala, and other different items. For the Assessment Year 2012 13, as per the Revisionist, the Opposite Party had admitted a purchase turnover and stock transfer of goods to the tune of INR 3,21,65,65,914/- and sale turnover inside U.P. to the extent of INR 1,99,27,81,937/- and admitted a tax liability of INR 62,53,93,015/-. b. A survey was conducted by the S.I.B., Ghaziabad, on the production unit of the Opposite Party on February 2, 2012, and at the time of survey, 14,338 cartons containing 17,04,84,000 cigarettes were found whereas in the books of account stock of 14,818 cartons were found as recorded according to the Revisionist. Accordingly, a total sum of 480 cartons were found less on physical verification. c. Since, the rate of tax on cigarette was enhanced to 50% from July 1, 2012, the assessing authority took the view that 480 cartons were sold on July 1, 2012, and July 2, 2012, and no sale invoices thereof were issued in order to escape the actual sales. On this groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting found 14,338 cartons of cigarettes instead of 14,818 cartons entered in the stock register. As such, a shortage of 480 cartons was found and the assessing authority rightly presumed that the same has been sold out of books as from July 1, 2012, the rate of tax was enhanced to 50%. The conclusion drawn by the assessing authority was based on a reasonable ground which has been completely ignored by the second appellate authority. (iii) After survey dated July 2, 2012, the subsequent intimation by correspondence dated July 6, 2012, to the assessing authority was an attempt to cover the short comings found by the surveying authority. A reasonable explanation for tallying the shortage found at the time of survey dated July 2, 2012, was required to be furnished but the same was no reconciled by the Opposite Party. Instead, the Opposite Party tried to give a roundabout explanation by mentioning that the stock of FSS Vally + FSS ND brand cigarette was 2,188 boxes but the same was counted as 2,376 boxes as the difference of 188 boxed was counted twice, Further, the stock of FSSPL Brand of cigarette was of 2,775 boxed which was counted as 2,402 boxes and by mistake 83 boxed were cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to time sells / stock transfer such goods from the registered premises on their own account and duly account such sales / stock transfer in its books of accounts. Besides, INTCO also maintains various statutory records as required under the central excise provisions to account finished goods as manufactured by it for and on behalf of the Opposite Party. In particular, daily stock account is maintained by it to account production and removal of finished goods on daily basis. The disposal of finished stock from the registered premises is accounted in the books of the Opposite Party as sales / stock transfer and in statutory records maintained by INTCO as removals. In other words, entries in the Opposite Party s books of accounts towards sale / stock transfer of finished stock are mandatorily always supported by the corresponding entry in the records of INTCO. (ii) M/s INTCO is the wholly owned subsidiary company of the Opposite Party, which manufactures cigarettes on behalf of the Opposite Party in the same premises i.e. Meerut Road, Ghaziabad . However, the records of the Opposite Party and INTCO are separately maintained. (iii) The SIB authorities conducted the survey of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax vide their letter no. 68 dated July 18, 2012, requiring the Opposite Party to produce relevant records in connection with the survey conducted by them on July 2, 2012. Based on the aforesaid notice, the Opposite Party submitted detailed representation along with relevant records vide its letter dated August 3, 2012. (viii) The Opposite Party further received a notice dated January 1, 2013, from the jurisdictional Deputy Commissioner requiring the Opposite Party to reply in respect of various deficiencies allegedly noticed by the SIB authorities during their survey conducted on July 2, 2012. In particular, the Opposite Party was asked to explain as to the reasons for shortage found during such survey in finished stock to the tune of 480 cartons. In response thereto, the Opposite Party submitted its submissions, vide its letter dated January 28, 2013, explaining the correct factual position. However, the Deputy Commissioner, Commercial Tax directed the Assistant Commissioner to conduct the re-verification. However, the authorities neither conducted re-verification of finished stock as requested by the Opposite Party, nor did they consider or discuss any of the evidence furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect status was duly reported to AC (SIB) vide letter dated July 3, 2012, within 24 hours of the said survey with specific request for re-verification of stocks. Further the said status was also intimated to the Assessing Authority vide letter dated July 6, 2012. However, none of the authorities felt necessary to re-verify the stock of finished goods in the premises of the Opposite Party. The stock status furnished by the Opposite Party to the SIB authorities during their visit in its premises on July 2, 2012, is duly reconciled with the corresponding stock status as per the Daily Stock Account being maintained by M/s INTCO in terms of Central Excise Rules, 2002. (xiii) In terms of the Rule 10 of the Central Excise Rules, 2002, the manufacturer is statutorily required to maintain daily stock account on daily basis containing details of finished goods such as (a) Opening Balance, (b) Manufactured during the day, (c) Removed on payment of duty or otherwise, and (d) Closing balance. Under the central excise law, any difference in actual stock vis a vis stock as per Daily Stock Account can be considered as clandestinely removed by the manufacturer without payment of duty and has se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INR 8,55,00,000/- is made by the Assessing Authority on the sole ground of survey dated July 2, 2012. The stock of cigarettes as per records was 14,818 cartons but was wrongly noted by the surveying officer in diary as 14,323 cartons and further ascertained by the Assessing Authority to 14,338 cartons vide the impugned order. (xviii) No allegation of clandestine removal can be made solely on the ground of assumptions. To establish a case of clandestine clearance, it is necessary for the department to come up with substantial evidence which could satisfy that the activity of clandestine clearance has taken place. Mere reliance upon assumptions and conjecture is not enough for the establishment of case of clandestine clearance. (xix) The Commercial Tax Tribunal, Ghaziabad has given detailed findings both factual as well as legal in the impugned order dated January 25, 2023. (xx) It is finally submitted that no question of law arises in the present revision as the Revisionist itself has acknowledged the anomalies regarding the counting of the cartons and cigarettes thereby proving that physical verification was not properly conducted. ANALYSIS AND CONCLUSION 5. I ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of the case in conformity with the said decision. (5) All applications for revision of orders passed under Section 57 in appeals arising out of the same cause of action in respect of an assessment year shall be heard and decided together: Provided that where any one or more of such applications have been heard and decided earlier, if the High Court, while hearing the remaining applications, considers that the earlier decision may be a legal impediment in giving relief in such remaining applications, it may recall such earlier decision and may thereafter proceed to hear and decide all the applications together. (6) The provisions of Section 5 of the Limitation Act, 1963, shall mutatis mutandis, apply to every application, for revision under this section. Explanation. For the purpose of this section, the expression any person includes the Commissioner and the State Government. 8. In Hindustan Petroleum Corporation Limited v. Dilbahar Singh reported in (2014) 9 SCC 78 , a Constitution Bench of the Hon ble Supreme Court of India elucidated the ambit of revisional jurisdiction as follows: 31. We are in full agreement with the view expressed in Sri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. We do not think that the three-Judge Bench has gone to that extent in Ram Dass [Ram Dass v. Ishwar Chander, (1988) 3 SCC 131] . The observation in Ram Dass [Ram Dass v. Ishwar Chander, (1988) 3 SCC 131] that as the expression used conferring revisional jurisdiction is legality and propriety , the High Court has wider jurisdiction obviously means that the power of revision vested in the High Court in the statute is wider than the power conferred on it under Section 115 of the Code of Civil Procedure; it is not confined to the jurisdictional error alone. However, in dealing with the findings of fact, the examination of findings of fact by the High Court is limited to satisfy itself that the decision is according to law . This is expressly stated in Ram Dass [Ram Dass v. Ishwar Chander, (1988) 3 SCC 131] . Whether or not a finding of fact recorded by the subordinate court/tribunal is according to law, is required to be seen on the touchstone whether such finding of fact is based on some legal evidence or it suffers from any illegality like misreading of the evidence or overlooking and ignoring the material evidence altogether or suffers from perversity or any such illegality or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Code of Civil Procedure, and under some Rent Acts in some States. Ordinarily, again, revisional jurisdiction is analogous to a power of superintendence and may sometimes be exercised even without its being invoked by a party. The extent of revisional jurisdiction is defined by the statute conferring such jurisdiction. The conferment of revisional jurisdiction is generally for the purpose of keeping tribunals subordinate to the revising Tribunal within the bounds of their authority to make them act according to law, according to the procedure established by law and according to well defined principles of justice. Revisional jurisdiction as ordinarily understood with reference to our statutes is always included in appellate jurisdiction but not vice versa. These are general observations. The question of the extent of appellate or revisional jurisdiction has to be considered in each case with reference to the language employed by the statute. (Vide Sri Raja Lakshmi Dyeing Works v. Rangaswamy Chettiar, MANU/SC/0480/1980 : (1980) 4 SCC 259). 12. According to the dictionary meaning appeal is the judicial examination of the decision by a higher Court of the decision of an inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t while explaining the expressions appeal and revision employed in a statute/rule, observed that the expression revision is meant to convey the idea of a much narrower jurisdiction than that conveyed in that expression appeal . The use of two expressions appeal and revision is not without purpose and significance. Ordinarily, appellate jurisdiction involves a rehearing while it is not so in the case of revisional jurisdiction when the same statute provides the remedy by way of an appeal and so also of a revision . If that were so, the revisional power would become coextensive with that of the trial Court or the subordinate tribunal which is never the case. The revisional power is not wide enough to make it a second Court/authority of second appeal. Under the garb of revisional jurisdiction, the revisional authority is not conferred a status of second authority of appeal and the authority cannot enlarge the scope of revisional jurisdiction to that extent. 17. In dealing with the finding of fact, the examination of findings of fact by the revisional authority is limited to satisfy itself to the legality and propriety of such order. Whether or not a finding of fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (supra) , the Hon ble Supreme Court in Mohd. Inam v. Sanjay Kumar Singhal and others reported in MANU/SC/0497/2020 , reiterated the scope of revisional powers to be exercised by the High Court: .It can thus be seen, that the Constitution Bench has settled the position, that the revisional power does not entitle the High Court to interfere with the finding of the fact recorded by the first appellate court/first appellate authority because on reappreciation of the evidence, its view is different from the court/authority below. The consideration or examination of the evidence is confined to find out as to whether the finding of facts recorded by the court/authority below is according to law and does not suffer from any error of law. It has been held, that a finding of fact recorded by court/authority below, if perverse or has been arrived at without consideration of the material evidence or such finding is based on no evidence or misreading of the evidence or is grossly erroneous that, if allowed to stand, it would result in gross miscarriage of justice, in such a case, it is open to correction because it is not treated as a finding according to law. 25. No doubt, tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicative process at lower echelons of the judicial hierarchy. It is incumbent upon High Courts, when exercising revisional jurisdiction, to vigilantly scrutinize the legal landscape and ascertain whether the impugned judgment or order suffers from any infirmities of jurisdictional import or egregious deviations from the normative contours of legal propriety. The legislative intent underpinning the conferment of revisional jurisdiction upon High Courts is imbued with a profound commitment to the principles of judicial economy, finality, and legal certainty. Revisional jurisdiction is not conceived as a vehicle for the protracted re-examination of factual matrices, or the interminable redressal of grievances already exhaustively adjudicated upon by the lower courts or tribunals. Rather, it constitutes an instrumental mechanism for rectifying egregious legal errors or jurisdictional excesses that may have vitiated the adjudicative process, thereby ensuring the equitable and efficacious administrative of justice. 14. In delving into the factual matrix of the instant case, it becomes manifestly clear that no overarching element of perversity or patent illegality is present in the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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