CLASSIC SPICES PVT.LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) THE revision petitions are filed by the assessee challenging the order of the Sales Tax Appellate Tribunal, whereunder the Tribunal confirmed the validity of suo motu revisional orders issued by the Deputy Commissioner of Commercial Taxes under Section 35 of the KGST Act directing revision of original assessments completed by the assessing officer for the assessment years 1997 -98 and 1998 -99. The petitioner was engaged in powdering and selling of red chilly, coriander, Turmeric etc., which does not involve any manufacturing activity. However, in the original assessment for the assessment years 1997 -98 and 1998 -99 petitioner claimed exemption which was granted by the assessing officer. Both the assessments were completed on 27.06.01. However, the assessing officer later noticed that exemption was wrongly granted and therefore he revised the assessments under Section 19(1) of the Act withdrawing the sales tax exemption wrongly granted and bringing tax escaped turnover. Petitioner filed writ petition challenging the validity of these revised assessments on the ground that the revised orders passed under Section 19(1) were beyond the period of limitation provided under the statute.

(2.) SUBSEQUENT to the revision of original assessments by the assessing officer under Section 19(1), the Deputy Commissioner of Commercial Taxes initiated suo motu revisional proceedings under Section 35 of the KGST Act because he noticed that the revised assessments completed under Section 19(1), were not tenable as those were issued beyond the period of limitation. Eventhough the assessee raised objection stating that original assessments do not survive after revised orders are issued by the assessing officer under Section 19(1), the Deputy Commissioner overruled the objections and issued orders under Section 35 setting aside the original assessments with direction to the assessing officer to revise the assessments against which the assessee filed appeals before the Tribunal and Tribunal dismissed the appeals.