AMBIKA INDUSTRIES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE petitioner is a dealer in fried grams. It buys grams and fries the same into fried grams. For the assessment period October 24, 1976 to November 11, 1977, there was an assessment order dated January 30, 1979. The total turnover was determined at Rs. 6,55,336 and the taxable turnover was held to be Rs. 15,000. On March 3, 1981 that order was rectified under section 25a of the Karnataka Sales Tax Act, 1957 (for short "the Act" ). The turnover regarding the sales of fried gram made out of the grams purchased in the course of inter-State sales was enhanced to Rs. 1. 28,178, against which there was an appeal by the petitioner. The appellate authority set aside the rectification order and remanded the matter on July 22, 1981. On August 18, 1981, the assessing authority made a fresh order on the basis of the remand order and he recomputed the turnover regarding the sales of fried grams made out of grams purchased under inter-State sales at Rs. 19,311 and levied a tax of Rs. 772. The total turnover at Rs. 6,55,336 was however maintained.

(2.) THEREAFTER , the Deputy Commissioner initiated proceedings for revising the assessment order under section 21 (2) of the Act. After considering the objections of the petitioner, he made an order on November 29, 1985, by which he revised the assessment. He held that the taxable turnover ought to be Rs. 3,32. 210. The petitioner approached the Appellate Tribunal in appeal without any success. Hence this revision petition.

(3.) IT is not possible to accept the contention of the learned counsel for the assessee. There can be no doubt that the proceedings taken for rectification of assessment of tax, were proceedings for assessment. In other words, the rectification proceedings were part of the assessment proceedings. Consequently, the effect of the rectification was to rectify the taxable turnover which was part of the total turnover. The process of rectification involved the consideration of the question as to what was the turnover of the petitioner out of which the quantum to be determined for attracting the levy.