1987 (2) TMI 493 - HC - VAT and Sales Tax

Court remits matter to tribunal for consideration of taxable turnover formula under section 8-A(1)(a)

The Court partially allowed the revision petition, remitting the matter to the Sales Tax Appellate Tribunal for consideration of the formula under section ... - Issues:1. Dispute over taxable turnover under the Central Sales Tax Act.2. Application of formula under section 8-A(1)(a) for determining taxable turnover.3. Dispute regarding additional tax under section 5-A of the Andhra Pradesh General Sales Tax Act.4. Permission to raise additional ground in appeal.5. Assessment of turnover related to acting as an agent of ryots and agriculturist.6. Admissibility of plea regarding the application of section 8-A(1)(a) formula.Analysis:The judgment pertains to a revision petition filed by a registered dealer challenging the Sales Tax Appellate Tribunal's order on the assessment year 1975-76. The dealer disputed the tax liability on a turnover amount and raised various contentions. The Tribunal dismissed the appeal citing a Full Bench decision that prevents disputing turnover or rate of tax not raised before the first appellate authority. The dealer sought to raise an additional ground related to being an agent of ryots and agriculturist, which the Tribunal rejected. The Tribunal also did not address the application of the formula under section 8-A(1)(a) for determining taxable turnover.Regarding the first contention raised by the dealer, the Court held that the Full Bench decision precludes the dealer from disputing the turnover not raised before the first appellate authority. The Court emphasized that the subject matter of the appeal is limited to disputed turnover, tax, or rate of tax. The Court found that the dealer's attempt to raise a new point before the Tribunal was effectively disputing the tax liability on a turnover not previously challenged.On the second contention, the Court ruled in favor of the dealer. The dealer had raised a specific plea regarding the non-application of the formula under section 8-A(1)(a) by the assessing authority, which was not addressed by the Tribunal. The Court stated that it is within the Tribunal's jurisdiction to examine this aspect as the final court of fact and directed the matter to be remitted to the Tribunal for consideration of the applicability of the formula in determining the taxable turnover for the assessment year.In conclusion, the Court partially allowed the revision petition, remitting the matter to the Sales Tax Appellate Tribunal for consideration of the formula under section 8-A(1)(a) for determining taxable turnover. The Court dismissed the petition in other respects, with no order as to costs.