Revision notice must state a clear legal basis where export-sale facts are disputed; notice set aside and remanded.

A revision notice seeking to revise a completed assessment was challenged on the ground that it was not properly founded in law under Article 286(2), Section 4(2) of the CST Act, and the definition of sale under the TNGST Act. The notice relied on invoices raised at Chennai and an assumption that movement of ships to foreign ports was not in pursuance of an export contract, but the underlying facts, including the place and manner of delivery, were disputed. In these circumstances, the notice was held to require a fresh, clear proposal stating the exact basis for revision. The impugned notice was set aside and the matter remanded for fresh action after hearing the assessee.

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Issues: Whether the revision notice seeking to revise the completed assessment for the assessment year 2000-2001 was sustainable in law in the light of Article 286(2) of the Constitution of India, Section 4(2) of the CST Act, 1956, and the definition of sale under Section 2(n) of the TNGST Act, 1959 read with Explanation 3(a)(i) thereto.

Analysis: The notice proceeded on the premise that the invoices were raised at Chennai and that the movement of the ships to foreign ports was not in pursuance of an export contract. At the same time, the notice substantially relied on the petitioner's own reply and the surrounding facts were disputed, including the place and manner of delivery of the ships. In these circumstances, the notice was found to be beyond proper consideration without first issuing a fresh and clear proposal specifying the exact basis for revision. The matter was therefore remitted to enable a fresh notice or corrigendum and a fresh decision after hearing the second petitioner.

Conclusion: The impugned revision notice was set aside and the matter was remanded to the respondent for fresh action in accordance with law.

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