Turnover tax liability cannot stand without reasoned examination of relevant material; revisional order set aside and remanded.

A revisional order sustaining turnover tax liability was set aside because the authority failed to examine relevant material and gave no cogent reasons for rejecting the assessee's claim that sales of de-oiled rice bran and de-oiled cake were differently treated for exemption purposes. The Court held that the revisional authority should have called for the records from the assessing and appellate authorities and considered the available evidence before recording a finding on liability. As the factual basis had not been properly scrutinised, the matter was remanded for reconsideration in accordance with law.

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Issues: Whether the revisional order sustaining liability to turnover tax required interference and remand for reconsideration of the assessee's claim that sales of de-oiled rice bran and de-oiled cake were differently treated for exemption purposes.

Analysis: The revisional authority proceeded on the basis that the assessee had not produced clinching evidence, but the order did not give cogent reasons for declining to examine the nature of the assessee's sales and the material available on record. The Court held that the authority could have called for the records from the assessing and appellate authorities and considered the relevant evidence before recording a finding on liability to turnover tax. Since the matter had not been properly examined on the relevant factual aspect, interference was warranted.

Conclusion: The appeal was allowed, the impugned revisional order was set aside, and the matter was remanded to the revisional authority for reconsideration in accordance with law.

Final Conclusion: The assessee succeeded in obtaining a fresh decision on the disputed turnover-tax issue because the prior revisional determination was found to be inadequately reasoned and was sent back for reconsideration.

Ratio Decidendi: A revisional order affecting tax liability cannot be sustained where it fails to examine relevant material and records a conclusion without adequate reasons; such an order may be set aside and remanded for fresh consideration.

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