Commercial Taxes Officer vs Pratap Oil Industries

Alok Sharma, J.—This revision petition has been filed against the order dated March 26, 2009, passed by the Rajasthan Tax Board whereby the Tax Board was pleased to remand back the matter to the Deputy Commissioner (Appeals) to decide the issue with regard to the set-off which the respondent-assessee was entitled to on the tax found payable with reference to the diesel purchased as raw material by the assessee in the light of the notification dated September 13, 1989. Section 86 of the Rajasthan Sales Tax Act, 1994 (for short, "the Act of 1994"), more particularly, sub-section (3) provides that an application for revision shall state the question of law involved in the order sought to be revised.

The counsel for the petitioner submits that the question of law which arises in the present case is as to whether in the facts and circumstances of the case, the Rajasthan Tax Board was justified in law and has not acted illegally and perversely in directing the appellate authority to decide the issue which was not raised before the assessing authority.

I have heard counsel for the petitioner and perused the impugned order.

The issue in the present revision petition which thus needs address is the extent of powers which inhere in the Rajasthan Tax Tribunal.

Section 85 of the Act of 1994 provides for an appeal to the Tax Board. In terms of sub-section (6) of section 85 of the Act of 1994, it is provided that the Tax Board may admit an appeal or permit the filing of memorandum of cross-objections even after the expiry of the period of limitation. In terms of sub-section (11) of section 85 of the Act of 1994 it is provided that the Tax Board shall after giving both the parties to the appeal an opportunity of being heard, pass such an order thereon as it thinks fit and send a copy thereof to the assessee, the assessing authority, the authority whose order was appealed against and the Commissioner. Thus in my considered view the powers of the Tax Board u/s 85 of the Act of 1994 are plenary and the Tax Board, taking into consideration all the facts and circumstances of the case obtaining before it can pass any order including an order of remand.

In the case at hand, the Tax Board, faced with the situation where the assessee was seeking adjustment of tax and set-off on the basis of tax paid on diesel purchased as raw material, acted within its jurisdiction in requiring the question of the assessee''s claim to set off to be considered by the appellate authority and it was thereafter with the appellate authority to take into consideration all the relevant facts and came to a correct conclusion as regard the tax liability of the respondent-assessee.

I find no question of law arising in the present revision from the order dated March 26, 2009 passed by the Tax Board. Consequently, the revision petition is dismissed as being devoid of any substance.