LAWS(MAD)-1997-8-24

STATE OF TAMIL NADU Vs. SPEEDLINE AGENCIES

Decided On August 13, 1997
STATE OF TAMIL NADU Appellant
V/S
SPEEDLINE AGENCIES Respondents

JUDGEMENT

(1.) THIS revision is filed by the State which was the respondent before the Tamil Nadu Sales Tax Appellate Tribunal, Coimbatore, in an appeal against the order of rejection of an application for rectification filed by the assessee. The rectification sought was in the order of the appellate Assistant Commissioner in respect of the assessment year 1980-81. It was the case of the assessee that it had produced "c" forms before the assessing officer but those forms were not considered and therefore the order required rectification. The Tribunal allowed the appeal and while doing so, the tribunal directed the concerned assessing officer to "pass a fresh assessment order" on the basis of the "c" forms produced by the assessee.

(2.) THE learned Government Advocate submitted that the tribunal has exercised a jurisdiction not vested in it by entertaining the appeal against the order of an authority which had declined to rectify its order on the grounds urged by the assessee. Reliance was placed on section55 (4)of the Tamil Nadu General Sales Tax Act. That sub-sectionwas inserted by Act 31 of 1972. That sub-section reads thus : "section 55 (4) : THE provisions of this Act relating to appeal and revision shall apply to an order of rectification made under this section as they apply to the order in respect of which such order of rectification has been made. " * THE main section 55 deals with power to rectify any error apparent on the face of the record. Section 55 (1) confers powers on the assessing authority or an appellate or revising authority (including the appellate Tribunal) which may, at any time within five years from the date of any order passed by it, rectify any error apparent on the face of the record. THE provision requires the authority to give notice to the dealer and reasonable opportunity to such dealer before making an order of rectification which has the effect of enhancing an assessment or any penalty. Section 55 (2)provides that if the rectification has the effect of reducing an assessment or penalty, the assessing authority shall make any refund which may be due to the dealer. Section 55 (3) provides that in the event of enhancement the assessing authority shall give a revised notice of assessment or penalty to the dealer, and thereupon the provisions of the Act and the Rules made thereunder shall apply as if such notice had been given in the first instance. Section 55 (3-A)provides that the powers under sub-section (1) may be exercised by the assessing authorities even though the original order of assessment, passed in the matter has been the subject-matter of an appeal or revision.

(3.) THE Tribunal was therefore in error in entertaining an appeal against the order of the Appellate Assistant Commissioner refusing to rectify the alleged errors. THE impugned order of the Tribunal is set aside. THE revision petition is allowed. .