Deputy Commissioner (Administration) Cannot Revise Orders of Deputy Commissioner (Appeals) u/s 57 of Sales Tax Act: Bombay HC [Read Order]
The Bombay High Court ruled that the Deputy Commissioner (Administration) has no jurisdiction to revise orders of the Deputy Commissioner (Appeals) under Section 57 of the Bombay Sales Tax Act.
Deputy Commissioner - Sales Tax Act - Bombay HC - taxscan
Deputy Commissioner - Sales Tax Act - Bombay HC - taxscan
In a recent ruling, the Bombay High Court held that the Deputy Commissioner (Administration) cannot exercise revisional powers over orders passed by the Deputy Commissioner (Appeals) under Section 57 of the Bombay Sales Tax Act, 1959, since both are officers of the same rank.
The case arose after the Assistant Commissioner of Sales Tax granted Mardia Steel Ltd. a refund, but a penalty and interest were also levied. The company appealed, and the Deputy Commissioner (Appeals) set aside the penalty and interest.
Later, the Deputy Commissioner (Administration), claiming to act under Section 57, revised the appellate order and raised an additional demand of Rs. 1,40,070.
The revenue counsel, Jyoti Chavan, argued that the Commissioner has the power to delegate revisional authority and that such powers had been delegated to the Deputy Commissioner (Administration). The revenue counsel further argued that this delegation gave him jurisdiction to revise the order of the Deputy Commissioner (Appeals).
The assessee was unrepresented before the High Court. Before the Tribunal, the assessee’s counsel had argued that the Deputy Commissioner (Appeals) and the Deputy Commissioner (Administration) are of coequal and coordinate rank. As such, one cannot revise the orders of the other.
The Division Bench comprising Justice M. S. Sonak and Justice Advait M. Sethna observed that Section 57(1)(a) permits revision only in relation to orders made by officers subordinate to the revising authority.
The court explained that the Deputy Commissioner (Appeals) and the Deputy Commissioner (Administration) are of the same rank, and delegation cannot be used to contravene the clear language of the statute.
The court held that the Deputy Commissioner (Administration) had no jurisdiction to revise the appellate order, and the Tribunal was correct in setting aside his revisional order. The question was answered in favour of the assessee and against the Revenue.
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