VAT High Court Cases

Tamil Nadu VAT Act, 2006 - Power to First Appellate Authority - Appellant contended that the First Appellate Authority having accepted the stand of the appellant that freight charges cannot be added to the value of the sale, came to the conclusion that the transaction should be treated as a local sale - The appellant case that the finding of the First Appellate Authority is without jurisdiction as he has no power to change the character of the transaction and in terms of Section 52(3) of the TNVAT Act, the powers exercisable by the Appellate Authority qua the Assessment Order cannot travel beyond the same - The ld. Single Bench did not agree with the appellant and held that in terms of Clause (b) of Section 52(3), the Appellate Authority in case of any other order, confirm, cancel or vary such order – HELD - Clause (b) of Section 52(3) of TNVAT Act cannot read in isolation, but it is relatable to Clause (a) in Section 52(3) - The procedure for such suo motu revision are entirely different and distinct for normal appellate powers conferred on the Appellate Joint Commissioner - while reading Clause (a) and (b) of Section 52(3), a harmonious construction has to be given, bearing in mind the legal principle that the Appellate Authority cannot travel beyond the subject matter of the assessment - The Appellate Authority erroneously came to the conclusion that the transaction should be treated as a legal sale which was neither the case of the Assessee nor has decided by the Assessing Officer - the correct interpretation to be given to clause (b) of Section 52(3) is to mean that the power is exercisable in the case of any other order which can be confirmed, canceled or varied, provided it does not change the character of the transaction nor the subject matter which was the issue before the Assessing Officer. Thus, the order passed by the first Appellate Authority is without jurisdiction and set aside - the Writ Appeal is allowed

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