1968 (2) TMI 93 - SC - VAT and Sales Tax

Escapment of turnover - Held that - Appeal dismissed. The proceedings commenced after the returns were submitted by the assessee. No final order of assessment has yet been made in regard to the said returns and therefore it cannot be said that any turnover of the assessee has escaped assessment within rule 34(1) of the Mysore Sales Tax Rules 1948.

Summary

Issues:
1. Assessment of turnover for the year 1955-56 under the Mysore Sales Tax Act, 1948.
2. Application of time-limit prescribed in the Act for passing assessment orders.
3. Validity of sections 4 and 6 of the Mysore Sales Tax (Amendment) Act, 1962.
4. Procedure for making best judgment assessments by the Commercial Tax Officer.
5. Constitutional points regarding assessment authority's power to assess regardless of limitations.
6. Interpretation of statutory provisions under the Mysore Sales Tax Act, 1948.
7. Assessment proceedings and determination of turnover for a dealer who has submitted returns.

Analysis:

1. The judgment dealt with the assessment of turnover for the year 1955-56 under the Mysore Sales Tax Act, 1948. The appellant, a member of a joint Hindu family, filed quarterly returns, leading to an initial estimate by the Commercial Tax Officer. Subsequent appeals and remands resulted in revised assessments by the authorities.

2. The issue of the application of the time-limit prescribed in the Act for passing assessment orders arose during the proceedings. The appellant contended that the assessment order for the year 1955-56 should have been passed by a specific date, and the Commercial Tax Officer could not bypass this limitation due to directions from the appellate authority.

3. The validity of sections 4 and 6 of the Mysore Sales Tax (Amendment) Act, 1962, was questioned. The Commissioner of Commercial Taxes relied on these sections to justify the assessment not being barred by limitation, despite objections raised by the appellant regarding the retrospective amendment.

4. The judgment addressed the procedure for making best judgment assessments by the Commercial Tax Officer. It was noted that the officer had not provided a written notice to the assessee explaining the basis for the assessment, leading to the assessment being set aside and remanded for proper procedure compliance.

5. Constitutional points regarding the assessment authority's power to assess the assessee for the year 1955-56 were discussed. The Court ultimately agreed with the respondent's counsel that the Commercial Tax Officer could assess the assessee irrespective of limitations, rendering the constitutional points unnecessary to decide.

6. Interpretation of statutory provisions under the Mysore Sales Tax Act, 1948, was crucial in the judgment. Sections related to turnover, assessment, and rules governing assessments, including provisions for making best judgment assessments, were analyzed in detail to determine the legality of the assessment process.

7. The judgment emphasized the assessment proceedings and the determination of turnover for a dealer who had submitted returns. The Court clarified that until a final assessment order was made, it could not be concluded that any turnover had escaped assessment, highlighting the importance of completion of assessment proceedings for a comprehensive evaluation.