TaxTMI 
TaxTMI 
2021 (11) TMI 429
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.... states that Additional Commissioner is empowered under Section 15 (2) of the Act to revise the orders passed by a Joint Commissioner of Commercial Taxes or an Appellate Authority of the rank of a Deputy Commissioner? (2) Whether the Additional Commissioner of Commercial Taxes was justified in invoking Section 15 (2) of the Act to review the order dated 30.03.2015 insofar as it related to levy of Entry Taxes on the purchase turnover of RS Emulsion which was not the subject matter of the appeal i.e.KTEG.AP.5/15-16 (A.Y.:2008-09 and the same having not formed the subject matter of the appeal?" 3. The assessee, a proprietary concern is a registered dealer under the provisions of the Act and is engaged in the business of executing works contracts for various Government agencies such as Public Works Department, Bangalore Development Authority, etc. 4. During the assessment year 2008-09, an assessment order dated 30.03.2015 was passed by the Commercial Tax Officer levying tax relating to entry of goods, i.e., on the purchase turnover of bitumen emulsion as also on the motor vehicle along with penalty and interest. Being aggrieved, the assessee filed an appeal before the Fi....
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.... the powers under Section 15(2) of the Act, though is empowered to call for and examine the record of a proceeding under the Act, but is empowered to revise the order passed under the Act by a Joint Commissioner or appellate authority of the rank of Deputy Commissioner, but not of the Assessing Authority. In the guise of revising of the Appellate Authority, Addl. Commissioner has set aside the order of the Assessing Authority which ex facie establishes that the Revisional Authority has clearly exceeded his jurisdiction. The three sub-sections of Section 15 of the Act, viz., (1) to (3) have to be harmoniously interpreted to reach a logical conclusion having regard to the language employed in the said sub-sections. The learned counsel though fairly admitted that no objection was raised by the assessee inasmuch as jurisdiction of Additional Commissioner in the revisional proceedings, it was submitted that the aspect of jurisdiction goes to the root of the matter and a challenge could be made to such invalid orders even in appeal proceedings before this Court. 8. Learned counsel for the Revenue, justifying the impugned order, submitted that the assessee is precluded from chal....
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....own motion call for and examine the record of any proceedings under this Act, and if he considers that any order passed therein by [a Joint Commissioner, or an appellate authority of the rank of a Deputy Commissioner] is erroneous in so far as it is prejudicial to the interests of revenue, he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such orders thereon enhancing or modifying the assessment or canceling the assessment or directing a fresh assessment. (3) The Joint Commissioner may on his own motion call for and examine the record of proceeding under this Act and if he considers that any order passed therein by any officer who is not above the rank of a Deputy Commissioner is erroneous in so far as it is prejudicial to the interests of revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify including an order enhancing or modifying the asses....
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....ng and examining the record of any proceeding under the Act, is conferred with the power to revise the order passed by the Joint Commissioner, or an appellate authority not above the rank of a Deputy Commissioner. Indeed, the Additional Commissioner has observed that the order passed by the First Appellate Authority i.e. Joint Commissioner of Commercial Taxes was erroneous insofar as it is prejudicial to the interest of the Revenue and initiated the suo-moto revision proceedings. No infirmity is found in this aspect. 14. In the case of Shankar Construction Co. (supra), the revisional authority while exercising the power under Section 22A of the Act on examining the orders of the Assessing Authority and First Appellate Authority, had issued a detailed notice to the assessee setting out various reasons for proposing to revise the orders of both the authorities, indicating to revise the assessment and conclude the same effectively by carrying out the process of re-assessment. In that context it was observed that the Revisional Authority has not only stated that it proposes to revise the assessment, but has also used the word 'conclude' while issuing the show-cause notice. This demo....
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....2003, by virtue of the amendment which has come into effect from 01.04.2013, it was made clear that the revisional authority can cancel the order and direct a fresh assessment. The word "and" would make the difference. Both the limbs namely "cancelling the assessment order" and "direct fresh assessment" have to be read in conjunction as the word "or" was substituted by the word "and'" But in the present case, under Section 15 (2) of the Act, the word "or" remains as it is in between the words "cancelling the assessment" and "directing a fresh assessment." However, as discussed above, the Revisional Authority has not passed the reassessment order but only directed the Assessing Authority to recompute the Turnover and Tax liability regarding the RS Emulsion issue. 17. It is profitable to refer to the judgment of this court in the case of Bhagawan Rice Mills and Oil Industries, Hiriyur .v. The Additional Commissioner of Commercial Taxes, Davanagere Zone, Davanagere and Another [1999 (46) Kar.L.J. 73 (HC) (DB)], wherein a Division Bench of this Court while considering Section 22A of the KST Act, 1957 which is in pari materia with Section 15 (2) of the Act, has observed that 'the rev....