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TMI Blog1971 (9) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... arise for determination will also have to be decided by it. - Civil Appeal No. 2272 of 1968, - - - Dated:- 22-9-1971 - HEGDE K.S. AND GROVER A.N. JJ. I.N. Shroff and R.P. Kapoor, Advocates, for the appellants. M.N. Phadke, Senior Advocate (U.N. Bachawat, K.L. Hathi and P.C, Kapur, Advocates, with him), for the respondent. -------------------------------------------------- The judgment of the court was delivered by GROVER, J.- This is an appeal by certificate from a judgment of the Madhya Pradesh High Court in a writ petition filed by the respondent challenging certain orders relating to assessment of sales tax. The respondent held mineral concessions for extracting manganese ore in respect of mining ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e end of the year 1958 the respondent applied for registration to the Sales Tax Officer, Chhindwara Circle, exercising jurisdiction over the Balaghat and Chhindwara districts. On December 27,1958, a registration certificate was granted to him. Thereafter the Sales Tax Officer issued a notice to the respondent under sections 17, 18 and 19 of the Act of 1958. He proceeded to assess the respondent for the period October 1, 1953, to December 26, 1958. The amount assessed came to Rs. 31,580.42 and a penalty of Rs. 5,000 was imposed. The respondent filed an appeal to the Appellate Assistant Commissioner of Sales Tax. As he did not deposit the past dues of the tax and the penalty demanded of him the appeal was not admitted in view of section 38(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales prior to November 1, 1956, which had been completed at Nagpur which was included in the State of Maharashtra with effect from November 1, 1956. and (6) the Appellate Assistant Commissioner and the Board of Revenue were in error in not entertaining the appeals on the ground that the amount of tax assessed had not been deposited. The State contested the writ petition and controverted the points raised therein by the writ petitioner. It also raised certain objections and contentions. The High Court held that the notices that were issued by the sales tax authorities were within limitation. But without deciding the other points which had been raised in the writ petition the High Court disposed of the whole matter by referring to se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is in arrears of any taxes. This is so even where the assessee is required to pay the tax amount as per his own determination along with the returns submitted by him." In the opinion of the High Court, under section 78 the place of assess- ment of the tax must be the place which was included in the territories of the successor State. So long as the assessee was not registered as a dealer with reference to any particular place of business it could not be said that Katangjhiri in Balaghat district was the place of business with respect to the ore extracted from the mines in Nagpur and Bhandara districts. Registration certificate granted to the assessee in 1958 after the reorganisation of the States in which the place of business wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efund, on the successor State in whose territories the place of assessment of that tax or duty is included. Part VII in the States Reorganisation Act was intended to effectuate apportionment of assets and liabilities between the existing State and the successor State. "Existing State" was defined by section 2(g) to mean a State specified in the First Schedule to the Constitution at the commencement of Act of 1956. A "successor State" was defined by section 2(g) to mean in relation to an existing State that State to which the whole or any part of the territories of that existing State was transferred by the provisions of Part II. It is difficult to give a narrow meaning to the word "arrears" in section 78 in the manner done by the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... darnath Jute Mfg. Co., Ltd. v. Commissioner of Income-tax, Central, Calcutta(1)). We have no doubt that the word "arrears" in respect of tax has been used in the sense of dues or what has become due by way of tax and that does not depend on assessment proceedings or quantification of the amount. We do not consider that the amounts due by way of tax are covered by the residuary provisions, i.e., section 91 of the Act of 1956. The High Court has disposed of the matter mainly on the interpretation of section 78 of the Act of 1956 with which we are unable to agree. For these reasons the judgment of the High Court is set aside and the matter is remanded to it to redecide the same and while doing so all the material points that arise for determ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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