Tribunal cannot enhance tax liability in assessee's appeal without a State enhancement petition and notice to the assessee.

In an assessee's appeal under the Tamil Nadu General Sales Tax Act, the Tribunal's power is confined to granting or refusing relief on the grounds raised. It cannot, on its own motion, increase the tax burden or otherwise pass an order prejudicial to the assessee. A prejudicial order is permitted only where the State files an enhancement petition and gives notice to the assessee under section 36(3)(a). In the absence of such a petition, the Tribunal lacked jurisdiction to correct the tax rate upward or enhance liability against the appellant-assessee.

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Issues: Whether the Sales Tax Appellate Tribunal could, in an appeal filed by the assessee, correct the rate of tax and pass an order prejudicial to the assessee without any enhancement petition filed by the State.

Analysis: The Tribunal's power under section 36(3) of the Tamil Nadu General Sales Tax Act, 1959, in an assessee's appeal is confined to granting relief or refusing relief on the grounds raised. The power to make an order adverse to the assessee is specifically regulated by section 36(3)(a), which contemplates an enhancement petition by the State and notice to the assessee. In the absence of such an enhancement petition, the Tribunal cannot suo motu enlarge its jurisdiction to increase the tax burden or otherwise pass a prejudicial order against the appellant-assesseee.

Conclusion: The Tribunal could not enhance the tax rate or pass a prejudicial order against the assessee without an enhancement petition from the State; the answer is in favour of the assessee.

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