M EKAMBARA MUDALIAR Vs. STATE OF MADRAS

JUDGEMENT

(1.) THE petitioners in this case were dealers in various goods as also commission agents. THEy were assessed for the year 1957-58 under the Madras General Sales Tax Act, 1939 (Madras Act 9 of 1939), on 15th April, 1960, on a net turnover of Rs. 1, 79, 249. 95. THE said assessment order was revised by the Deputy Commissioner of Commercial Taxes suo motu under section 32 of the Madras General Sales Tax Act, 1959 (Madras Act 1 of 1959), by an order dated 30th March, 1963, and he enhanced the net turnover by Rs. 1, 40, 617. 29. As a result of the said revision the net turnover on which the petitioners have been assessed was Rs. 3, 19, 867. 24. As against the enhancement of the turnover by the revisional authority, there was an appeal to the Sales Tax Appellate Tribunal. But the Tribunal upheld substantially the enhancement except as regards a small turnover of Rs. 4, 400.

(2.) BEFORE us the petitioners question the enhancement made by the revisional authority not only on merits but also on the ground that the deputy Commissioner had no jurisdiction to invoke the power under section 32 of madras Act 1 of 1959 in respect of the assessment year 1957-58 which is governed by Madras Act 9 of 1939.

(3.) COMING to the question of jurisdiction of the revisional authority to invoke section 32 of Madras Act 1 of 1959 in respect of the assessment year 1957-58 it is necessary to set out the provisions relating to the suo motu revision by the Deputy Commissioner, both under Madras Act 9 of 1939 and Madras Act 1 of 1959. Section 12 (2) of Act 9 of 1939 which gave the power of revision to the Deputy Commissioner is as follows : "the Deputy Commissioner may - (i) suo motu, or (ii ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . call for and examine the record of any order passed or proceeding recorded under the provisions of this Act by any officer subordinate to him, for the purpose of satisfying himself as to the legality or propriety of such order, or as to the regularity of such proceeding, and may pass such order with respect thereto as he thinks fit. " * The relevant provision in Act 1 of 1959 is section 32, which is as follows : "section 32. (1) The Deputy Commissioner may, of his own motion, call for and examine an order passed or proceeding recorded by the appropriate authority under section 4-A, section 12, section 14, section 15, or sub-sections (1) and (2) of section 16 and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such order thereon as he thinks fit."