2016 (4) TMI 680

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....as dismissed the revision application and confirmed the order passed by the Deputy Commissioner of Sales Tax. 2. The appellant is a company registered under the Companies Act, 1956. During the relevant year, the appellant had carried out two works contracts with BPCL and L & T Limited for which it had applied for composition under section 55(A) of the Gujarat Sales Tax Act, 1969, (hereinafter referred to as the "Act") and also obtained permission for composition in Form 35(B). The appellant submitted all the monthly, quarterly and annual returns and also paid sales tax accordingly. Subsequently, the Sales Tax Officer, without cancelling the composition permission granted to the appellant, assessed it as if such composition permission was....

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....Bhatt, learned advocate, for the appellant invited the attention of the court to the facts of the case to submit that the order permitting composition was passed on 19.12.2000, whereas the same was taken in revision by issuance of notice dated 2.2.2005 which is clearly beyond the period of limitation prescribed under section 67 of the Act. Referring to the provisions of section 67 of the Act, it was pointed out that the limitation prescribed therein in a case where the Commissioner of his own motion takes an order passed by any officer appointed under section 27 to assist him, is three years from the date of such order, whereas in the facts of the present case while the composition order was passed on 19.12.2000, notice under section 67 of ....

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....ed. It was submitted that the procedure adopted by the appellant should not be encouraged and that in any case the ground for cancellation of the composition permission was not illegal. It was argued that the material condition for such permission was that the applications for composition permission ought to have been filed within one month and that since the applications were not filed within one month, the composition permission could not have been granted. Therefore, the grant of composition permission itself was illegal. 7.1 The learned Assistant Government Pleader further pointed out that the Tribunal has thought it fit that it would not be just, legal and equitable to encourage dishonesty by giving technical benefit to the appellan....

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.... this behalf, the Commissioner of his own motion within three years or on an application made to him within one year from the date of any order passed by any officer appointed under section 27 to assist him, may call for and examine the record of any such order and pass such order thereon as he thinks just and proper within twelve months from the date of service of notice for revision. 10. From the language employed in the section 67 of the Act, it is amply clear that the period of limitation of three years commences from the date any order has been passed by any officer appointed under section 27 to assist the Commissioner. In the present case, such order is the composition order dated 19.12.2000. In the light of the clear language of c....

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.....]" 402. In Ransom v. Higgs, (1974) 1 WLR 1594, Lord Simon stated that: (WLR pp. 1616 H-617 B) "... It may seem hard that a cunningly advised taxpayer should be able to avoid what appears to be his equitable share of the general fiscal burden and cast it on the shoulders of his fellow citizens. But for the Courts to try to stretch the law to meet hard cases (whether the hardship appears to bear on the individual taxpayer or on the general body of taxpayers as represented by the Inland Revenue) is not merely to make bad law but to run the risk of subverting the rule of law itself." (emphasis supplied) 403. The proper course in construing revenue Acts is to give a fair and reasonable construction to their l....