2021 (2) TMI 48 - SC - VAT and Sales Tax

Levy of Entry Tax - Respondent was a Casual Trader - time limitation for passing an Assessment Order - HELD THAT - Under Section 2(ccc) of the Rajasthan Sales Tax Act, 1994 Casual Trader means a person who has, whether as principal, agent or in any capacity, occasional transaction of business nature involving the buying, selling, supply or distribution of such goods as may be specified by the State Government by notification in the official gazette whether for cash, or for deferred payment, or for commission, remuneration or other valuable consideration - Sections 10A and 10B of the Rajasthan Sales Tax Act pertain to assessment and the time limit for assessment in the case of a Casual Trader. Section 10A(1) read with Section 10A(2) of the Rajasthan Sales Tax Act, 1954 provides that every Casual Trader , on completion of a transaction of sale or purchase, for which he is liable to pay tax, shall make a report to the Assessing Officer or to the Officer-in-charge of a Check Post, of the sale or purchase price, tax payable thereon, etc. and deposit the tax with such officer. Subsection (3) of Section 10 enables the Assessing Officer to assess the tax payable by a Casual Trader on his failure to make a report. In the case of a Casual Trader , the time limit for assessment is one year from the date of making the report, and if no report is made, within two years from the date of the transaction. The date of transaction in this case is 26.12.2009. The question is whether assessment was barred upon expiry of two years from the date of transaction, and/or in other words after 25/26.12.2011 - The Appellate Authority, the Rajasthan Tax Board and the High Court have concurred in arriving at the finding that the assessment of the Respondent was barred by limitation as the Respondent was a Casual Trader . A perusal of the definition of Casual Trader makes it amply clear that a person with occasional transactions of buying/selling are to be treated as casual traders, for whom a shorter time limit for assessment has been imposed under Section 10B(iii) read with Section 10A of the Rajasthan Sales Tax Act 1954. The Legislature could not, possibly, have intended that a person making 2 or 3 transactions should be treated as a Casual Trader , but a person making only one transaction should be treated at par with regular traders. It is well settled that in construing a statutory provision, words in the singular are to include the plural and vice versa, unless repugnant to the context in which the expression has been used, as provided in Section 13(2) of the General Clauses Act, 1897 and provisions identical thereto in State enactments pertaining to General Clauses. SLP dismissed.

Summary

Issues:
1. Dismissal of Revision Petition against Tax Assessment Order
2. Interpretation of provisions of the Entry Tax Act, 1988
3. Classification of a person as a "Casual Trader"
4. Time limit for assessment in the case of a Casual Trader

Analysis:
1. The Supreme Court dealt with a Special Leave Petition challenging the dismissal of a Revision Petition against a Tax Assessment Order by the High Court. The case originated from an Appeal filed by the Petitioner against a Tax Assessment Order dated 9.10.2012, which was rejected by the Rajasthan Tax Board. The High Court dismissed the Revision Petition, leading to the present appeal before the Supreme Court.

2. The Respondent was issued summons under the Rajasthan Tax on Entry of Motor Vehicle into Local Areas Act 1988, three years after purchasing a truck/trailer. The Assessment Order imposed tax, penalty, and interest on the Respondent. The Appellate Authority set aside the Assessment Order, considering the Respondent as a "Casual Trader." The issue revolved around the liability of the Respondent to Entry Tax and the applicability of relevant provisions of the Entry Tax Act, 1988.

3. The key contention was whether the Respondent qualified as a "Casual Trader" under the Rajasthan Sales Tax Act, 1994. The Appellate Authority, Rajasthan Tax Board, and High Court agreed that the Respondent was a "Casual Trader," justifying the shorter time limit for assessment. The Petitioner argued that a single transaction did not classify the Respondent as a "Casual Trader," emphasizing the plurality of transactions as a condition precedent.

4. The Supreme Court analyzed the provisions of the Rajasthan Sales Tax Act regarding the assessment and time limit for a Casual Trader. The Court considered the definition of "Casual Trader" and the time limit for assessment, emphasizing the legislative intent behind imposing a shorter assessment period for individuals with occasional transactions. The Court highlighted the interpretation of statutory provisions in a just, reasonable, and sensible manner to avoid anomalies or inconsistencies.

In conclusion, the Supreme Court dismissed the Special Leave Petition, upholding the judgments of the lower courts. The Court found no grounds to interfere with the impugned judgment and order, citing subsequent decisions under Article 136 of the Constitution of India.