New taxability grounds cannot be raised for the first time at tribunal stage, but statutory turnover computation must still be examined.

An assessee cannot raise before the sales tax appellate tribunal a new objection to the taxability of turnover that was not disputed before the first appellate authority, because the tribunal's scope is confined to matters already in issue. A separate plea that the assessing authority failed to apply the statutory formula for determining taxable turnover must, however, be examined by the tribunal as the final fact-finding forum. The commentary therefore distinguishes between an impermissible fresh ground on liability and a required review of the computation method under section 8-A(1)(a), with the latter needing reconsideration.

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Issues: (i) Whether the assessee could raise before the Sales Tax Appellate Tribunal a new ground disputing the liability of a turnover to tax when that contention had not been raised before the first appellate authority; and (ii) whether the Tribunal had to consider the applicability of the formula under section 8-A(1)(a) for determination of the taxable turnover.

Issue (i): Whether the assessee could raise before the Sales Tax Appellate Tribunal a new ground disputing the liability of a turnover to tax when that contention had not been raised before the first appellate authority.

Analysis: The governing principle was that the subject-matter of the appeal before the Tribunal is confined to the disputed turnover, tax, or rate of tax that was already placed in issue before the first appellate authority. A contention that would unsettle the taxability of a turnover not previously disputed cannot be introduced for the first time at the Tribunal stage. On that principle, the proposed additional ground was in substance an attempt to reopen a matter that had become final earlier.

Conclusion: The assessee was not entitled to raise the additional ground before the Tribunal.

Issue (ii): Whether the Tribunal had to consider the applicability of the formula under section 8-A(1)(a) for determination of the taxable turnover.

Analysis: A specific plea had been taken that the assessing authority had not applied the statutory formula for determining taxable turnover. That plea had been negatived by the first appellate authority, but the Tribunal did not deal with it. As the final fact-finding forum, the Tribunal was required to examine that contention and determine the effect of the formula on the net taxable turnover.

Conclusion: The matter required reconsideration by the Tribunal on the applicability of section 8-A(1)(a).

Final Conclusion: The revision succeeded only on the limited question of reassessment of taxable turnover under the statutory formula, while the challenge to the additional ground failed.

Ratio Decidendi: An assessee cannot raise before the appellate tribunal a new objection to taxability that was not disputed before the first appellate authority, but a specific statutory plea affecting computation of taxable turnover must be examined by the final fact-finding tribunal.

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