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TMI Blog1965 (11) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 11 of the U.P. Sales Tax Act, 1948 (U.P. Act 15 of 1948), hereinafter referred to as the Act. In this reference the following question was referred by the judge (Revisions), Sales Tax, at the instance of the appellant, Modi Sugar Mills Ltd., hereinafter called the assessee: "Whether a dealer who has been assessed to tax on the turnover of the previous year according to his election can change his option and elect the assessment year by filing quarterly returns with- out the previous sanction of Sales Tax Commissioner." The High Court answered the question in the negative. The answer to this question depends upon the interpretation of section 7(1) of the Act, and rules 39, 40 and 41 of the U.P. Sales Tax Rules, and Form IV prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n so as to vary the basis of assessment: Provided that the Sales Tax Commissioner may, for reasons to be recorded in writing and on such conditions as he deems fit permit a dealer to exercise a fresh option. Rule 40. Submission of returns.-Every dealer who elects to submit return of his previous year shall, within sixty days of the commencement of the assessment year, submit to the Sales Tax Officer a return in Form IV showing his turnover for the previous year: Provided that no dealer whose turnover in the previous year was less than Rs. 15,000 shall be required to furnish such returns. Rule 41. Returns of assessment year.-(1) Every dealer whose estimated turnover during the assessment year is not less than Rs. 15,000 and who elects to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e., the election to file returns of the turnover of the assessment year instead of the turnover of the previous year. Rule 40 does not displace the above reading of rule 39 because it covers the case of every dealer who wishes to submit a return of the turnover of the previous year. There is no other rule which deals with such a dealer, and he says that the word "elects" may perhaps have reference to the election mentioned in Form IV which we will presently consider. At any rate, he says that sub-rule (2) of rule 39 has nothing to do with the election mentioned in rule 40. He then submits that rule 41 is concerned with the dealer who has elected under rule 39(1) to submit returns of the turnover of the assessment year and this rule provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a dealer to elect to submit returns of his turnover for the assessment year in view of the returns of the turnover of the previous year. In other words, under rule 39(1) the dealer makes a choice that he will be assessed in respect of the turnover not of the previous year, which is normally the rule under section 7, but in respect of the return of the turnover of the assessment year. It seems to us that rule 39(2) covers only the case where election has been made by a dealer to be assessed in respect of the turnover of the assessment year. It is true that rule 40 also uses the word "elects" but this may have reference to the lines in Form IV which we have already reproduced above. But assuming that when a dealer submits a return in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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