STATE OF KERALA Vs. VINAYAKA TIMBERS

JUDGEMENT

(1.) The question raised is whether the Assessing Officer was justified in revising the assessment under S. 19(1) of the K.G.S.T. Act for the reason that rate of tax applied is below the actual rate payable. The assessee declared turnover as turnover of civil work and paid tax at compounding rate at 2%. However, the audit wing found out that the assessee was engaged in supply of furniture which cannot be treated as civil work. Even if compounding rate is applied, assessee has to pay tax at 5%. The Tribunal interfered with the rate of assessment for the reason that the original assessment was done by Fast Track Team under S. 17D of the K.G.S.T. Act. Further, there is no new material to justify reopening under S. 17D(2)(d) of the K.G.S.T. Act. The finding of the Tribunal is that for reopening assessment completed under S. 17D, the Commissioner's approval is required for the Assessing Officer. It is against this order of the Tribunal, State has filed this revision. After hearing both the sides and on going through the Tribunal's order, we notice that the provision does not require Commissioner's permission along with the finding of new material as a ground for reopening. On the other hand, such permission is only an alternative to the non-availability of receipt of fresh materials for reopening assessment. In this case, the audit has revealed that the turnover involved includes sale of furniture. So much so, S. 17D(2)(d) is satisfied and the Assessing Officer was right in reopening the assessment. However, since original assessment was completed by Fast Track Team, we set aside the order of the Tribunal and direct the Assessing Officer to refer the file along with the notice and reply of the assessee to the Fast Track Team for revision of assessment under S. 17D read with S. 19(1) of the K.G.S.T. Act.

(2.) The Fast Track Team should complete the assessment after giving opportunity of hearing to the assessee and for producing documents.