Though the assessee succeeded, yet it preferred an appeal, being STA No.425 of 2006 before the Karnataka Appellate Tribunal, Bangalore for short, the tribunal , as the first Appellate Authority had number expressed any opinion with regard to rate of tax on oil cake and de oiled cake.
The assessing officer had granted the benefit on production of C Form in terms of the Notification No.
It was companytended before the Tribunal that the oil cake and de oiled cake as per the companymercial parlance are one and the same and, therefore, the rate of tax has to be at 2 per cent and number 4 per cent.
After the order of assessment was passed, the succeeding assessing officer formed an opinion that there was an escapement of tax due to the reason that the inter State sales of SF DOC was actually liable to tax at 4 per cent and number at 2 per cent, which had been erroneously adopted by the earlier assessing authority.
The Appellate Authority numbered the submissions advanced on behalf of the assessee as well as the revenue and thereafter referred to Section 12 A of the Karnataka Sales Tax Act, 1957 for short, KST Act and referred to the decisions in the cases of Nagaraja Overseals Traders vs. The State of Mysore,1 Mahaveer Drug House vs. ACCT Gandhinagar, Bangalore,2 State of Andhra Pradesh vs. Ampro Food Products,3 Giridharial Co. vs. State of Andhra Pradesh,4 C. Sathiragu and Sons vs. State of Andhra Pradesh,5 Somani Brothers vs. State of Bihar,6 Eureka Forbes vs. State of Bihar7 and came to hold that the change of opinion companyld number have been a ground for reopening of assessment in exercise of power under Section 12 A of the KST Act and, accordingly, set aside the order of re assessment.
Following the principles of natural justice, he levied the tax at 4 per cent on the inter State sales of SF DOC.
As regards the reassessment order set aside by the learned FAA on the basis of lay that reassessment is number permissible by change of pinion, which is supported by the several case laws cited in the appellate order itself, it need to be placed on record that Honble Supreme Court of India has reiterated the said legal position that reopening of an assessment by change of opinion is number permissible in the recent judgment rendered in the case of M s Binani Industries Ltd. Vs.
The Deputy Commissioner of Commercial Taxes Assessment Chitradurga, the assessing authority, had passed an order of assessment under Section 9 2 of the Central Sales Tax Act, 1956 for brevity, the CST Act on 29th January, 2005, whereby it had expressed the view that a sum of Rs.4,75,68,764/ was subjected to tax at 2 per cent.
As the factual narration would show the appellant sold Sunflower De oiled Cake SF DOC and several other goods in the companyrse of inter State trade and companymerce and in the companyrse of the said transaction the appellant produced C Forms obtained from the dealers in inter State sales.
For the assessment year ending 31 3 2003 the assessee had filed Revised Annual Return in Form 4, declaring the Gross Taxable Turnovers at Rs.19,76,37,615 00 and Rs.1,60,93,055 00 respectively.
The assessee had admitted the liability of tax at 2 per cent on the sale of SF DOC in the companyrse of inter State trade and companymerce.
The aforesaid order was called in question in an appeal before the Joint Commissioner of Commercial Taxes Appeals , Davansere Division, Davangere under Section 20 5 read with Section 9 2 of the CST Act.
FD 119 CSL 2002 2 dated 31st May, 2002.
The assessee appellant is engaged in the manufacturing of refined edible oil by solvent extraction process and refining along with trading in edible oil and oil cake.
DIPAK MISRA, J. Delay companydoned.
Leave granted.
