1998 (12) TMI 600

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....For the calendar year 1974 the assessee has claimed that chicory roots dealt in by the petitioner are exempt from tax generally being covered under either entry 8 or 23 of Schedule I appended to the Act and no tax whether under the State Act or the Central Act is payable on the sales made by the petitioner. The Tribunal in its order relating to calendar year 1973 has held in favour of the petitioner on September 29, 1976. It appears that in view of this position, the assessment for period then pending and subsequent thereto did not take place. 3.. The Commissioner, in exercise of his power under section 42 read with rule 37A of the Gujarat Sales Tax Act, issued show-cause notice for extending the period of completing assessment for the p....

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....quarely answered by the apex Court in Fag Precision Bearings v. Sales Tax Officer (I) [1997] 104 STC 143. That was a case in which, shorn of details, the reasons which the Commissioner was required to put in writing under the terms of rule 37-A for staying the assessments which were in progress stated, ".........................since some more time will be taken and the assessment proceedings are not likely to be completed within the prescribed time.................................it is considered proper to stay the assessment..................................". While the reason was accepted to be valid by the Gujarat High Court when the same was challenged, on appeal, reversing the decision of the Gujarat High Court in Pag Precision Bea....

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....26, 1998. The court has held that, "the essential character of chicory roots did not change by reason of the cutting, slicing and drying" and is exempt under entry 23 of Schedule I of the Gujarat Sales Tax Act. Thus, on merit also, the sale of chicory roots by the petitioner does not fall for taxation being generally exempt under the State law. Be that as it may, that is not the issue before us, but the fact has been noticed as the learned counsel for the Revenue sought to argue that in spite of Tribunal taking contrary view in Brooke Bond's case, the assessee did not file revised return to surrender the tax payable on chicory roots suggesting that returns were not bona fide. Suffice it to say that the fact that Tribunal, which is not a fin....