TaxTMI 
TaxTMI 
1994 (12) TMI 299
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....ieved of the order of refusal challenged the same by way of an appeal before the Deputy Commissioner of Commercial Taxes (Appeals), Bangalore City Division No. II. The Deputy Commissioner by an order dated February 2, 1990, allowed the exemption claimed by the petitioner and observed thus: "The claim of exemption by the appellant also supported by the decision of the Karnataka High Court in their decision reported in [1981] 48 STC 169 (State of Karnataka v. Shaw Wallace and Co. Ltd.) which was upheld by the honourable Supreme Court in their decision reported in [1989] 74 STC 379 (Raj Sheel v. State of Andhra Pradesh). Therefore, the action of the assessing authority in disallowing exemption on packing and forwarding charges amounting to ....
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....llate authority. 5.. I have heard the learned counsel for the petitioner and Mr. Nazeer, learned counsel appearing for the respondent, both of whom agreed to the disposal of the writ petition at this stage itself. 6.. Learned counsel appearing for the petitioner submitted that the notice proposes to bring to tax packing charges as also turnover tax on the basis that the same had been short levied. He however submitted that since the issue as to the turnover tax was pending disposal in appeal before this Court, the petitioner would give up his challenge so far as the said part of the notice was concerned and would confine his grievance in the proceedings only to that part of the notice which proposes to bring to tax the packing charges....
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....ts judgment the tax payable by the dealer in respect of such turnover after issuing a notice to the dealer and after making such enquiry as it may consider necessary. 9.. A plain reading of the provisions makes it manifest that the assessing authority before it can proceed under section 12-A must have reasons to believe that any part of the turnover has escaped assessment or that any exemption or deduction has been improperly granted. This implies that the assessing authority has not only to have some material or information to assume that there has been escaped assessment but also that any such escaped turnover was legally taxable. 10.. In the instant case, it is not denied that the packing charges incurred by the petitioner-assessee....
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....the appellate orders of the finality attached to them. Law lears in favour of finality of decisions and would not permit an interpretation which may militate against the said principles. It therefore follows that once the appellate authority had finally determined whether rightly or wrongly that packing charges were admissible to exemption it was not open to the assessing authority to sit in judgment and to suggest that what had been done by the appellate authority was impermissible or otherwise, improper. Inasmuch as the notice sent by the assessing authority amounts to setting at naught the order passed by the appellate authority, the same is without jurisdiction and ex facie improper and arbitrary. In that view of the matter, therefore, ....