STATE OF TAMIL NADU REP BY THE DEPUTY COMMISSIONER (CT), CHENNAI (CENTRAL) DIVISION Vs. TVL HINDUSTAN DORR OLIVER LTD

JUDGEMENT

(1.) The State has come forward with this revision raising the substantial question of law, viz., whether the Tribunal was justified in holding that the goods moved from other State at the instance of the assessee were earmarked for a specific works contract undertaken by the dealers and hence, deduction was allowable under Section 3-B(2)(a) of the TNGST Act.

(2.) Mr. Haja Naziruddin, learned Special Government Pleader (Taxes) contended that before the assessing officer, the assessee failed to produce any documents to show that the inter-state sale was for the execution of the works contract between the assessee and M/s.Madras Refineries Ltd. and in the circumstances, the said conclusion of the assessing authority, as affirmed by the Appellate Assistant Commissioner, ought not to have been interfered with by the Tribunal.

(3.) The jurisdiction exercised by the Appellate Tribunal is provided under Section 36 of the TNGST Act. Under Section 36(3)(a) of the Act, the Tribunal has been given ample powers in the case of an order of assessment to either confirm or reduce or enhance or restore fully or partially, as the case may be or annul the assessment or the penalty or both. It can also set aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be directed or pass such other orders as it may think fit. Thus, under the said provision, the Appellate Tribunal has been vested with enormous powers by which it can examine the facts involved in a case as could be examined by the assessing authority or by the immediate appellate authority, viz., the Appellate Assistant Commissioner. Under Section 36(9) of the Act, every order passed by the Appellate Tribunal under Section Sub-section (3) would become final, however, subject to the power of review under Sub-section (6) and a revision by a Special Tribunal as provided under Section 38 of the Act. It will have to be stated that the said Special Tribunal, which was set up by Act 42 of 1992 came to be subsequently abolished by Act No. 34 of 2004, which came into force from 13.7.2005. In such circumstances, when the Appellate Tribunal is the final forum of question of fact and law, it will have to be stated that the Tribunal was fully empowered to examine the correctness of the assessment orders made by the original authority, as affirmed by the immediate appellate authority in every respect before rendering its decision under Section 36(3) of the Act.