ERODE YARN STORES Vs. STATE OF MADRAS

JUDGEMENT

(1.) IN suo motu revision proceedings under section 34 of the Madras General Sales Tax Act, 1939, the Board of Revenue called for and examined the original order of assessment made upon the petitioners and took the view that the assessing authority had failed to bring to tax the value of the packing materials which was included in the sales turnover of cotton yarn. It also thought that a certain part of the turnover of the cotton yarn had been wrongly exempted as second sales. IN response to a notice issued by the Board of Revenue proposing to revise the assessment and to re-fix the turnover, the petitioners-assessees objected on the ground that as an appeal had been filed before the Tribunal the Board was not competent to take proceedings under section 34. Other objections to the assessability of the turnovers in question were also advanced. The Board held that the assessees had not filed an appeal to the Tribunal and that therefore the Board was not prevented from taking action under section 34. It also revised the turnover as proposed.

(2.) IT is against these orders that the present appeal has been filed.

(3.) SECTION 34 of the Act confers power upon the Board of Revenue to call for and examine an order made by the assessing authority, to enquire into the matter and subject to the provisions of the Act to pass such order thereon as it thinks fit. Sub-section (2) of section 34 states :