M/S CRAFT INTERIORS (P) LTD.versusTHE JOINT COMMISSIONER OF COMMERCIAL TAXES (INTELLIGENCE) & ANR.

                           [2019] 8 S.C.R. 899                                899


                 M/S CRAFT INTERIORS (P) LTD.                                 A
                                    v.
   THE JOINT COMMISSIONER OF COMMERCIAL TAXES
               (INTELLIGENCE) & ANR.
                    (Civil Appeal No. 8898 of 2011)                           B
                             JULY 02, 2019
      [A. M. KHANWILKAR AND AJAY RASTOGI, JJ.]
      Karnataka Sales Tax Rules, 1957:
        r. 6(4)(m)(i) r/w. Explanation to r. 6(4) – Constitutional validity   C
of – Whether the rule ovesteps the substantive/charging provision
i.e. s.5B of the Sales Tax Act – Held: Rule 6(4)(m)(i) and s.5B of the
Act operate in different fields – Section 5B is charging provision
while r. 6(4)(m)(i) is a provision for deduction from tax – Rule
6(4)(m)(i) r/w. Explanation III is in clear consonance with the               D
charging provision i.e. s. 5B – In the present case eligibility of the
assessee u/r. 6(4) is a clear question of fact which has to be
determined in the assessment proceedings – Karnataka Sales Tax
Act, 1957 – s. 5B.
      Dismissing the appeal, the Court                                        E
      HELD : 1.1 Section 5B of Karnataka Sales Tax Act, 1957
and Rule 6(4)(m)(i) of the Karnataka Sales Tax Rules, 1957
operate in different spheres. Section 5B is a charging provision
for levy of sales tax whereas Rule 6(4)(m)(i) is a provision for
deduction from tax. Under Section 5B, tax can be levied on                    F
transfer of property in the goods whether as goods or in some
other form whereas Rule 6(4)(m)(i) provides for a deduction in
respect of the goods which have already suffered tax and which
are used in the same form. Thus, it appears to be in clear
consonance with the charging provision and does not militate
against Section 5B of the Act, 1957. [Para 19] [907-C-D]                      G

      1.2 What emerges from the scheme of the Act and Rules
framed thereunder is that Rule 6(4)(m)(i) purports to grant benefit
to the assessee by allowing deductions for the value of goods

                                                                              H
                                   899
900           SUPREME COURT REPORTS                      [2019] 8 S.C.R.


A     which have already suffered taxation and which goods substantially
      retain their original identity while being used in the execution of
      a works contract. Explanation III to Rule 6(4) clarifies it further
      by categorically providing that in case the goods are transformed
      into a different commodity which then is used in the execution of
      works contract, then the benefit of deduction cannot be availed.
B
      It is trite law that tax provisions granting exemptions/concessions
      are required to be strictly construed. There is no variance
      between Rules 6(4)(m)(i) read with Explanation III and Section
      5B of the Act. [Paras 24, 25 and 26] [909-C-F]
            State of Tamil Nadu v. Pyare Lal Malhotra and Others
C
            (1976) 1 SCC 834 : [1976] 2 SCR 168 ; Vasantham
            Foundry v. Union of India and Others (1995) 5 SCC
            289 : [1995] 2 Suppl. SCR 575 ; B. Narasamma v.
            Deputy Commissioner of Commercial Taxes, Karnataka
            and Another (2016) 15 SCC 167 : [2016] 7 SCR 760 ;
D           Telangana Steel Industries and Others v. State of A.P.
            and Others (1994) Supp. 2 SCC 259 : [1994] 2 SCR
            324 – relied on.
            Media Communications v. Government of Andhra
            Pradesh 1997 (105) STC 227 (AP) – held inapplicable.
E
            E.C.I.E. Pvt. Ltd. v. Additional Deputy Commissioner,
            Commercial Taxes (Kar.)and Another 1999 (114) STC
            309 – referred to.
             2. So far as the five impugned notices of provisional
      assessment served under Section 28(6) of the Act is concerned,
F
      whether the assessee was eligible under Rule 6(4)(m)(i) is a
      question of fact which has to be determined in the assessment
      proceedings and since the provisional assessment has not been
      finalised due to pendency of the instant proceedings, it may not
      be advisable for this Court to dilate on the subject issue of the
G     notices served upon the appellant at this stage and leave it open
      to the appellant to address before the assessing authority
      in the pending appropriate assessment proceedings, if so advised.
      [Para 29] [910-F-G]

H
  M/S CRAFT INTERIORS (P) LTD. v. THE JOINT COMM. OF                         901
         COMMERCIAL TAXES (INTELLIGENCE)

      M/s. Achal Industries v. State of Karnataka AIR 2019                   A
      SC 1653 – referred to.
                        Case Law Reference
1999 (114) STC 309                referred to              Para 6
1997 (105) STC 227(AP)            held inapplicable        Para 8            B
[1994] 2 SCR 324                  relied on                Para 13
[1976] 2 SCR 168                  relied on                Para 20
[1995] 2 Suppl. SCR 575           relied on                Para 22
[2016] 7 SCR 760                  relied on                Para 23           C
AIR 2019 SC 1653                  referred to              Para 25
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8898
of 2011.
      From the Judgment and Order dated 16.09.2006 of the High               D
Court of Karnataka at Bangalore in Writ Appeal No. 1874 of 2003 (T-
KST).
      Ms. Charanya Lakshmikumaran, Shanthakukmar Mahale, Aaditya
Bhattacharya, Ms. Apeksha Mehta, Victor Das, Manish Rastogi, Rajesh
Mahale, Advs. for the Appellant.                                             E
       Devadatt Kamat, Sr. Adv./AAG, V.N. Raghupathy, Javedur
Rahman, Rajesh Inamdar, Aditya Bhat, Manendra Pal Gupta, Advs.
for the Respondents.
      The Judgment of the Court was delivered by
                                                                             F
      RASTOGI, J.
       1 The civil appeal arises out of the judgment of the Division Bench
of the High Court of Karnataka dismissing the writ petition and upholding
the validity of Rule 6(4)(m)(i) of the Karnataka Sales Tax Rules,
1957(hereinafter referred to as “KST Rules”) read with Explanation III       G
to Rule 6(4) of the said rules.
      2. The question which has been raised in the instant appeal is
whether the condition of ‘use in the same form in which such goods are
purchased’ under Rule 6(4)(m)(i) of the KST Rules expands the scope
                                                                             H
902             SUPREME COURT REPORTS                            [2019] 8 S.C.R.


A     of charging section i.e. Section 5B under KST Act, 1957.
             3. The brief facts of the case relevant for the purpose are that the
      appellant is a private limited company engaged in the business of interior
      decoration and other types of work. The appellant had purchased various
      goods from registered dealers under the KST Act, 1957 and used them
B     in the execution of works contracts. The appellant claimed deduction
      from the total turnover of such purchases in terms of Rule 6(4)(m)(i) of
      the KST Rules, 1957 as per which all amounts received or receivable in
      respect of goods purchased from registered dealers and used in the
      execution of works contracts in the same form in which goods are
      purchased, can be claimed as deduction from the total turnover.
C
              4. The assessing Officer issued notices for provisional assessment
      for the years 1998-99, 1999-2000, 2000-2001, 2001-2002 and 2002-2003
      to deny the deduction of the value of timber, purchased from the local
      registered dealers claimed under Rule 6(4)(m)(i) on the ground that the
D     timber was not used in the same form in which such goods were
      purchased, while executing the works contract. It was further observed
      that for carrying out the interior decoration, the appellant purchased timber
      in log forms, plaster of paris, plywood, glass sheets and the said purchases
      have been manufactured to produce the goods which are necessary for
      interior decoration. The Assessing Officer further observed that as per
E     Rule 6(4)(m)(i), the registered dealer purchases deductible from the works
      contract receipts is limited to transfer of the purchased goods in the
      same form. As per Explanation III of the said Rule “in the same form”
      do not include the registered dealer purchases which are either consumed
      or manufactured of other goods which are used in the execution of the
F     works contract. Hence, there shall be no deductions as claimed.
             5. It has been informed to this Court that five notices were issued
      by the Assessing Officer on 8th November, 2002 for different assessment
      years under Section 28(6)(iii) of the KST Act, 1957 and reply was
      submitted by the appellant but the matter has not been proceeded
G     thereafter any further because of pendency of the litigation. Being
      aggrieved, the appellant preferred writ petition, assailing the five show
      cause notices served upon the appellant/assessee and also the
      constitutional validity of Rule 6(4)(m)(i) read with Explanation III to
      Rule 6(4) of the said rules.

H
  M/S CRAFT INTERIORS (P) LTD. v. THE JOINT COMM. OF                          903
   COMMERCIAL TAXES (INTELLIGENCE) [RASTOGI, J.]

       6. The writ petition came to be dismissed by the learned Single        A
Judge of the High Court vide its Order dated 7th January, 2003 placing
reliance on the judgment of E.C.I.E. Pvt. Ltd. Vs. Additional Deputy
Commissioner, Commercial Taxes(Kar.) and Another 1999(114) STC
309 in which the High Court of Karnataka has upheld the constitutional
validity of the said Rule. So far as the order of the Joint Commissioner
                                                                              B
of Commercial Taxes (Intelligence) dated 6 th November, 2002 is
concerned, granted permission to the authority to take up the provisional
assessment in furtherance to the notices dated 8th November, 2002 and
to pass an appropriate order after hearing the parties in accordance with
law. Against the Order of the learned Single Judge dated 7th January,
2003, the unsuccessful appellant preferred LPA which also came to be          C
dismissed with supportive reasons vide judgment impugned dated 16th
September, 2006 which is a subject matter of challenge in appeal before
us.
       7. The main thrust of submission of the learned counsel for the
appellant, Mr. Charanya Lakshmikumaran, is that the condition under           D
Rule 6(4)(m)(i) of goods purchased be used “in the same form” is beyond
the charging section(Section 5B) of the KST Act, 1957. The charging
section does not restrict the form in which the goods are to be transferred
in a works contract. However, the Rule restricts the deduction available
on the form in which the goods are used in the execution of works             E
contract. According to learned counsel, the Rule referred to is
overstepping the substantive provision being unconstitutional is liable to
be struck down.
      8. Learned counsel further submits that the High Court of Andhra
Pradesh in the case of Media Communications Vs. Government of                 F
Andhra Pradesh 1997(105) STC 227(AP) struck down a pari materia
provision (Section 5F of the A.P. General Sales Tax Act, 1957) on the
premises that the said levy is contrary to the single point system of tax
and cannot be accepted. Appeal filed by the Government of Andhra
Pradesh against the said Order in SLP(C ) Nos. 6804-6849 of 1998 has
been dismissed by this Court on 29th October, 1998 and in the light of the    G
judgment of the High Court of Andhra Pradesh, Rule 6(4)(m)(i) read
with Explanation III is not sustainable and deserves to be quashed.
      9. Learned counsel further submits that provisional assessment
under Section 28 of the KST Act cannot be invoked unless there is an
                                                                              H
904            SUPREME COURT REPORTS                           [2019] 8 S.C.R.


A     assessment pending either for finalisation or assessment for escaped
      turnover under Section 12A for the assessment years 1998-1999 and
      1999-2000. The assessment stood finalised on 25th February, 2002. The
      notice for provisional assessment was issued on 8th November, 2002. In
      the given circumstances, there was no occasion to invoke Section 28
      when notice should have been issued under Section 12A, if upon going
B
      through the records and the books of accounts, the assessing officers/
      intelligence officers felt that the deduction under Rule 6(4)(m)(i) has
      been wrongly allowed and hence the turnover of the appellant has escaped
      assessment.
             10. According to the learned counsel, in the present case, no notice
C
      was issued under Section 12A for the assessment years 1998-1999 and
      1999-2000 and further assessments under Section 12 had already been
      finalised. Thus, Section 28(6) of the Act could not have been invoked
      since there was no pending assessment which sought to be revised by
      way of the provisional assessment. At least for the two assessment
D     years, the very action initiated by the respondent is not in conformity
      with the mandate of law and deserves to be interfered with by this Court.
             11. Per contra, Mr. Devadatt Kamat, learned AAG supporting
      the judgment of the High Court submits that Section 5B of the KST Act
      and Rule 6(4)(m)(i) of KST Rules operate in different spheres. Section
E     5B is a charging provision for levy of sales tax, whereas Rule 6(4)(m)(i)
      is a provision for deduction. Under Section 5B, tax can be levied on
      transfer of property in goods (whether as goods or “in some other form”),
      whereas Rule 6(4)(m)(i) provides for a deduction in respect of goods
      which have already suffered tax and which are used “in the same form”.
F     Thus, Rule 6(4)(m)(i) is in conformity with the charging provision and
      does not militate against charging Section 5B and submits that the very
      contention advanced by the appellant is misconceived and has been
      examined by the High Court in the impugned judgment needs no further
      consideration by this Court.

G           12. Learned counsel further submits that Explanation III appended
      to Rule 6(4) clarifies the expression “in the same form” used in Rule
      6(4)(m)(i) and the same goods can be taxed only once and the same
      goods cannot be made subject matter of multiple incidence of tax.
      However, if the goods which have suffered taxation undergoes

H
  M/S CRAFT INTERIORS (P) LTD. v. THE JOINT COMM. OF                         905
   COMMERCIAL TAXES (INTELLIGENCE) [RASTOGI, J.]

transformation into a different commodity altogether and is then used in     A
the execution of a works contract, the same being a different commercial
commodity, is indeed liable to be taxed and this being in the domain of
the legislative competence of the authority cannot be held to be ultra
vires as prayed for.
       13. Learned counsel further submits that the judgment of Media        B
Communications Vs. Government of Andhra Pradesh(supra) is wholly
misplaced. In Media Communications(supra), the High Court relied
on Telangana Steel Industries and Others Vs. State of A.P. and Others
1994 Supp(2) SCC 259 and recorded a finding that the first and second
proviso to Section 5F of the A.P. General Sales Tax Act are ultra vires
                                                                             C
of the main provision. The fact is the High Court in Media
Communications(supra) failed to notice that this Court in Telangana
Steel Industries and Others(supra) has held that ‘if two goods at hand
be different commodities”, the single point taxing principle would not
debar realisation of tax once again.’ This what has been observed would
not be construed as finding in affirmance in Media Communications            D
case(supra) merely on dismissal of the special leave petition(s) preferred
by the State of Andhra Pradesh.
       14. Learned counsel further submits that whether the assessee/
appellant was eligible under Rule 6(4)(m)(i) is a question of fact which
will have to be determined in pending proceedings initiated pursuant to      E
the impugned notices served upon the appellant. Since the provisional
assessment has not been finalised due to the pendency of the instant
proceedings, the Department be given liberty to complete these
proceedings obviously in accordance with law.
       15. We have heard learned counsel for the parties and with their      F
assistance perused the material available on record.
       16. Before we proceed with the matter further, it will be apposite
to take note of the relevant provisions of the KST Act, 1957 and KST
Rules, 1957:-
                                                                             G
      “5-B. Levy of tax on transfer of property in goods (whether
      as goods or in some other form) involved in the execution
      of works contracts.- Notwithstanding anything contained in sub-
      section (1) or sub-section (3) or sub-section (3-C) of section 5,

                                                                             H
906            SUPREME COURT REPORTS                          [2019] 8 S.C.R.


A           but subject to sub-section (4), (5) or (6)] 2 of the said section,
            every dealer shall pay for each year, a tax under this Act on his
            taxable turnover of transfer of property in goods (whether as goods
            or in some other form) involved in the execution of works contract
            mentioned in column (2) of the Sixth Schedule at the rates specified
            in the corresponding entries in column (3) of the said Schedule.”
B
                                                         (emphasis supplied)
            “6(4). In determining the taxable turnover, the amount specified
            in clauses (a) and (p) shall, subject to the conditions specified
            therein, be deducted from the total taxable turnover of a dealer as
C           determined under clauses (a) to (e) of sub-rule (1).
               (m). in the case of works contract specified in serial numbers
               1,2,3,4,5,6,7,8,9,10, 11,12,17,26,27,35,36,40 and 42 of the Sixth
               Schedules:
                   (i) All amounts received or receivable in respect of goods
D
                   other than the goods taxable under sub-section (1A) or (1B)
                   of section 5 which are purchased from registered dealers
                   liable to pay tax under the Act and used in the execution of
                   works contract in the same form in which such goods
                   are purchased.”
E
                                                           (emphasis supplied)
             17. Explanation III to Rule 6(4) of the KST Rules, which clarifies
      the expression “in the same form” used in Rule6(4) (m)(i) reads as
      under:
F           “Explanation III: For the purposes of sub-rule (4), the expression
            “in the same form” used in sub-clause (i) of clause (m) shall not
            include such goods which, after being purchased, are either
            consumed or used in the manufacture of other goods which in
            turn are used in the execution of works contract.”
G                                                            (emphasis added)
            18. From the bare perusal of the provision of the KST Act and
      KST Rules, 1957 indicated above, it clearly envisages that Section 5B of
      the KST Act is a charging provision which empowers the State to levy
      tax on the transfer of property in goods involved in works contract. At
H     the same time Rule 6(4)(m)(i) read with Explanation III to Rule 6(4) of
  M/S CRAFT INTERIORS (P) LTD. v. THE JOINT COMM. OF                       907
   COMMERCIAL TAXES (INTELLIGENCE) [RASTOGI, J.]

the KST Rules clarifies that the same goods can be taxed only once and     A
cannot be made subject matter of multiple incidence of tax and the goods
which have suffered taxation undergoes transformation into a different
commodity altogether and is then used in the execution of a works
contract, the same being a different commercial commodity is liable to
be taxed. The justification which has been tendered by the appellant in
                                                                           B
reference to five notices impugned in the instant proceedings for the
assessment years 1998-1999 to 2002-2003 is a question of fact to be
examined by the assessing authority who has served him the notices.
       19. We are clear, in our view, that Section 5B of the KST Act and
Rule 6(4)(m)(i) of the KST Rules operate in different spheres. Section
                                                                           C
5B is a charging provision for levy of sales tax whereas Rule 6(4)(m)(i)
is a provision for deduction from tax. Under Section 5B, tax can be
levied on transfer of property in the goods whether as goods or in some
other form whereas Rule 6(4)(m)(i) provides for a deduction in respect
of the goods which have already suffered tax and which are used in the
same form. Thus, in our view, it appears to be in clear consonance with    D
the charging provision and does not militate against Section 5B of KST
Act, 1957.
       20. This Court in State of Tamil Nadu Vs. Pyare Lal Malhotra
and Others 1976(1) SCC 834 has held that if the separate commercial
commodities emerge out of the goods already taxed earlier, the new         E
commercial commodity is liable to sales tax provided there is a law to
this effect. The relevant para is as under:-
      “10. As we all know, sales tax law is intended to tax sales of
      different commercial commodities and not to tax the production
      or manufacture of particular substances out of which these           F
      commodities may have been made. As soon as separate
      commercial commodities emerge or come into existence, they
      become separately taxable goods or entities for purposes of sales
      tax. Where commercial goods, without change of their identity as
      such goods, are merely subjected to some processing or finishing     G
      or are merely joined together, they may remain commercially
      the goods which cannot be taxed again, in a series of sales,
      so long as they retain their identity as goods of a particular
      type.”
                                                   (Emphasis supplied)     H
908               SUPREME COURT REPORTS                         [2019] 8 S.C.R.


A           21. Taking note of the exposition of legal principles laid down in
      Pyare Lal Malhotra and Others (supra), it brings out two basic principles
      governing sales tax law:
            i.    Sales tax can be levied on the same goods only once so long
                  as they retain their identity of goods of a particular type, and
B
            ii.   If separate commercial commodities emerge out of the (goods
                  already taxed earlier), then the said new commercial
                  commodity is liable to sales tax.
           This is what has been conferred in Rule 6(4)(m)(i) read with
      Explanation III to Rule 6(4) of which a reference has been made.
C
           22. In Vasantham Foundry Vs. Union of India and Others
      1995(5) SCC 289, this Court reiterated the Pyare Lal Malhotra and
      Others(supra) principle in para 25 as under:-
            “25. Therefore, in our view “cast iron casting” in its basic or
D           rough form must be held to be ‘cast iron’. But, if thereafter any
            machining or polishing or any other process is done to the rough
            cast iron casting to produce things like pipes, manhole covers or
            bends, these cannot be regarded as “cast iron casting” in its
            primary or rough form but products made out of cast iron castings.
            Such products cannot be regarded as ‘cast iron’ and cannot be
E
            treated as “declared goods” under Section 14(iv) of the Central
            Sales Tax Act. This view is not in conflict with the view taken in
            the case of Bengal Iron Corpn. [1994 Supp (1) SCC 310: (1993)
            90 STC 47], but it is in consonance with the decision in that case.”
             23. The same principle has been recently reiterated in B.
F
      Narasamma Vs. Deputy Commissioner of Commercial Taxes,
      Karnataka and Another 2016(15) SCC 167. In para 18 thereof, the
      principle of Pyare Lal Malhotra and Others(supra) quoted hereinabove
      is considered. Rule 6(4)(m)(i) came up for consideration in B.
      Narasamma(supra) where this Court after noting the said Rule came
G     to the conclusion in para 23 as under:-
            “23. On facts in this case, it has been found that the appellant is
            engaged in works contracts of fabrication and creation of doors,
            window frames, grills, etc. in which they claimed exemption for

H
  M/S CRAFT INTERIORS (P) LTD. v. THE JOINT COMM. OF                           909
   COMMERCIAL TAXES (INTELLIGENCE) [RASTOGI, J.]

      iron and steel goods that went into the creation of these items,         A
      after which the said doors, window frames, grills, etc. were fitted
      into buildings and other structures. On facts, therefore, we find
      that the High Court’s judgment [State of Karnataka v. Anant
      Engg. Words, 2006 SCC OnLine Kar 840] is correct and does
      not need to be interfered with inasmuch as the iron and steel
                                                                               B
      goods, after being purchased, are used in the manufacture of other
      goods, namely, doors, window frames, grills, etc. which in turn
      are used in the execution of works contracts and are therefore
      not exempt from tax.”
       24. What emerges from the scheme of the Act and Rules framed
                                                                               C
thereunder is that Rule 6(4)(m)(i) purports to grant benefit to the assessee
by allowing deductions for the value of goods which have already suffered
taxation and which goods substantially retain their original identity while
being used in the execution of a works contract. Explanation III to Rule
6(4) clarifies it further by categorically providing that in case the goods
are transformed into a different commodity which then is used in the           D
execution of works contract, then the benefit of deduction cannot be
availed.
      25. It is trite law that tax provisions granting exemptions/
concessions are required to be strictly construed as recently held by this
Court in M/s. Achal Industries Vs. State of Karnataka AIR 2019 SC              E
1653.
      26. In our considered view, there is no variance between Rules
6(4)(m)(i) read with Explanation III and Section 5B of the KST Act,
1957 and what is contended by the appellant in assailing the validity of
Rule impugned hereunder is misconceived and without substance.                 F
       27. The judgment in Media Communications(supra) of which
the learned counsel for the appellant has placed heavy reliance is of no
assistance for the reason that mere rejection of special leave petitions
by this Court at the motion stage would not be considered to be an
approval of the view expressed by the High Court of Andhra Pradesh.            G
That apart, para 7 of the judgment in Telangana Steel Industries and
Others case(supra) has been noticed by the High Court in Media
Communications(supra) and arrived to the conclusion that Telangana

                                                                               H
910             SUPREME COURT REPORTS                           [2019] 8 S.C.R.


A     Steel Industries and Others(supra) lent support to the reasoning of the
      High Court.
              28. Para 7 of the judgment of this Court in Telangana Steel
      Industries and Others(supra) in fact disseminate the reasoning recorded
      by the High Court in Media Communications(supra) to invalidate the
B     first and second proviso to Section 5B.
            “7. The above shows complexity of the concept of a different
            commercial product coming into existence because of
            manufacturing process undertaken. It is because of this that we
            do not propose to decide the controversy at hand, which is whether
C           iron wires are separate commercial goods from wire rods from
            which they are produced, by trying to answer whether they are
            one commercial commodity or separate. The point has however
            arisen for consideration because we are concerned with a
            single point sales tax, which would not allow taxing of the
D           same commodity again. It is also not in dispute that if the
            two goods at hand be different commodities, the single point
            taxing principle would not debar realisation of tax once
            again from the sale of wires. Shri Tarkunde’s whole emphasis
            is that goods in question cannot be regarded as two different
            commercial commodities. Let it be seen why this stand has been
E           take by the learned counsel on behalf of the appellants and whether
            the same is sound?”
                                                            (emphasis supplied)
             29. So far as the submissions made by the learned counsel for the
      appellant on merits in reference to the five impugned notices of provisional
F
      assessment served under Section 28(6) is concerned, whether the
      assessee was eligible under Rule 6(4)(m)(i) is a question of fact which
      has to be determined in the assessment proceedings and since the
      provisional assessment has not been finalised due to pendency of the
      instant proceedings, it may not be advisable for this Court to dilate on the
G     subject issue of the notices served upon the appellant at this stage and
      leave it open to the appellant to address before the assessing authority in
      the pending appropriate assessment proceedings, if so advised.
            30. Consequently, in our considered view, the appeal is without
      substance and accordingly dismissed. It will be open for the assessing
H
  M/S CRAFT INTERIORS (P) LTD. v. THE JOINT COMM. OF                           911
   COMMERCIAL TAXES (INTELLIGENCE) [RASTOGI, J.]

authority to proceed with the impugned assessment proceedings initiated        A
pursuant to notices dated 8th November, 2002 independently without being
influenced/inhibited by the observations made by us and conclude it,
after affording opportunity of hearing to the appellant, expeditiously in
accordance with law. No costs.
       31. Pending application(s), if any, stand disposed of.                  B

Kalpana K. Tripathy                                        Appeal dismissed.



                                                                               C




                                                                               D




                                                                               E




                                                                               F




                                                                               G




                                                                               H