Appeal confined to disputed tax: admitted turnover cannot be challenged for the first time in revision.

Under the U.P. Sales Tax Act, an appeal is confined to the disputed tax when payment of admitted tax is a condition for maintainability under section 9 and rule 66. The admitted turnover therefore does not form part of the subject-matter of the appeal. The revisional power under the first proviso to section 10(3) is similarly limited to the portion of the assessment order already brought in appeal. A challenge to the taxability of admitted turnover cannot be raised for the first time in revision, and relief on that amount is unavailable.

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Issues: Whether an assessee who admitted liability for tax on part of the turnover and paid that tax while filing an appeal against the assessment could later challenge that admitted liability in revision on the ground that the turnover was not taxable.

Analysis: The appeal under the sales tax law was confined to disputed tax, because the statutory scheme of section 9 of the U.P. Sales Tax Act and rule 66 of the U.P. Sales Tax Rules required payment of the tax admitted to be due as a condition for entertaining the appeal. On that basis, the admitted tax was not part of the subject-matter of the appeal. The revisional power under the first proviso to section 10(3) was likewise confined to the part of the assessment order that had been brought in appeal. A plea against the taxability of the admitted turnover could not therefore be introduced for the first time in revision.

Conclusion: The assessee was barred from raising the plea of non-taxability in revision in respect of the admitted turnover, and the refusal of relief on that amount was upheld.

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