STATE OF TAMIL NADU Vs. ARIHANT PLASTIC HOUSE

JUDGEMENT

(1.) THE State has come forward with this revision challenging the order of the Appellate Tribunal dated 27.06.2003 passed in CTSA.No,460/2001. Question of law sought to be raised is as to whether the Tribunal was correct in confirming the view of the lower appellate authority that there were no good grounds to invoke Section 16 of the Tamil Nadu General Sales Tax Act.

(2.) THE short facts are that for the assessment year 1993-94, the respondent herein placed all the records and accounts books relating to its transactions before the Assessing Officer including the turnover concerning the sale of 'Monafilament Niwar'. THE Assessing Officer after perusing the relevant accounts books passed the order of assessment wherein the turnover relating to the sale of 'Monafilament Niwar' was excluded inasmuch as by a Circular of the Commissioner of Commercial Taxes issued in D.Dis.Act Cell V/17554/93 dated 31.3.1993, the said item was exempted from payment of tax. THEreafter, the Assessing Officer is stated to have re-opened the assessment by invoking Section 16(1)(a) of the TNGST Act, by assessing the turnover relating to the sale of 'Monafilament Niwar' under the head of 'escaped assessment'. THE Appellate Assistant Commissioner (CT), Salem in Appeal No,566 of 1998 passed an order dated 14.05.1999, holding that such an attempt of the Assessing Officer for making a re-assessment by invoking Section 16(1)(a) of the Act, was not permissible inasmuch as the concept of escapement from assessment cannot be applied to the case on hand. THE Appellate Tribunal having confirmed the said view of the Appellate Assistant Commissioner in the order impugned in this revision, the State has come forward with this revision.