EXECUTIVE ENGINEER Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) . The petitioner, in execution of its work -contracts, supplied steel to the contractors. The Assessing Authority, Shimla vide order dtd. 12/2/2001 burdened the petitioner with sales tax liability to the tune of Rs.10,82,953.00 for the years 1995-96, 1996-97 and 1997-98 by treating supply of steel to the contractors as sale. Petitioner assailed the aforesaid order of Assessing Authority before the Additional Excise and Taxation Commissioner-cum-Appellate Authority (South Zone), Himachal Pradesh, Shimla under Sec. 30 of the Himachal Pradesh General Sales Tax Act, 1968 (for short 'Appellate Authority'). The appeal of petitioner was allowed on 10/10/2002. It was held that neither the sale nor transfer of goods could be said to have taken place between petitioner and the contractor at any stage of the contract. The order of Assessing Authority was set-aside so also the demand created thereby.

(2.) In 2009, the Excise and Taxation Commissioner-cum-Revisional Authority, Himachal Pradesh, Shimla (for short 'Revisional Authority'), suo-motu entertained the revision petition under Sec. 31 (1) of the Himachal Pradesh General Sales Tax Act, 1968 (for short 'HPGST Act') and vide order dtd. 26/5/2011 set-aside the order dtd. 10/10/2002 passed by the Appellate Authority. The demand created by the Assessing Authority vide assessment order dtd. 10/2/2001 was accordingly upheld.

(3.) Petitioner assailed the order dtd. 26/5/2011 passed by the Revisional Authority before the Himachal Pradesh Tax Tribunal, Dharamshala, Camp at Shimla (for short 'Tribunal') under Sec. 46 (3) of the Himachal Pradesh Value Added Tax Act, (for short 'VAT Act'), 2005. One of the contention raised before the Tribunal, on behalf of petitioner, was that Sec. 46 (1) of the VAT Act, 2005, barred the exercise of the revisional powers after five years from the date on which the order sought to be revised was communicated. Since the Revisional Authority had exercised revisional power suo motu after seven years, the order passed by the Revisional Authority suffered from illegality and deserved to be set-aside.