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1962 (5) TMI 19 - HC - VAT and Sales Tax
Issues: Interpretation of the word 'period' in section 11(5) of the Madhya Pradesh General Sales Tax Act, 1958; Limitation period for assessment by the Assistant Sales Tax Officer.
In this judgment by the Madhya Pradesh High Court, the court addressed the interpretation of the word 'period' in section 11(5) of the Madhya Pradesh General Sales Tax Act, 1958. The petitioner, a dealer, was issued notices under section 11(5) for two different periods. The main contention was whether 'period' should be construed as a quarter, as argued by the dealer, or as the entire period during which the dealer was liable to pay tax, as contended by the revenue. The court examined precedents and statutes to determine the meaning of 'period'. The court emphasized that the word 'period' was not defined in the Act and concluded that it refers to any period in which the dealer was liable to pay tax under the Act, rejecting the dealer's argument for a quarterly interpretation based on rules for registered dealers. The court also discussed the purpose of section 11(5) as a measure against tax evasion and emphasized that the provision should not be narrowly construed to facilitate evasion. Citing a Supreme Court decision, the court held that the word 'period' could encompass more than one quarter. The court further highlighted that the limitation of three years for assessment should be calculated from the end of the period during which the dealer was liable to pay tax. Consequently, the court ruled that no part of the assessment made by the Assistant Sales Tax Officer was barred by time. In conclusion, the court answered the questions posed by the dealer, stating that the word 'period' in section 11(5) encompasses the entire period of liability to pay tax and does not denote a lesser interval of time. Additionally, the court held that no part of the assessment conducted on 2nd June 1955 was time-barred. The court ordered the dealer to bear all costs of the reference, including a hearing fee.
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