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TMI Blog1957 (9) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... er by resort to the machinery of the Revenue Recovery Act and it is the validity of these proceedings that are attacked in these three petitions which relate to the assessments for the three years mentioned earlier. Two grounds have been urged by learned counsel for the petitioner. The first was that the assessment itself was invalid in that the statutory provisions in regard thereto had not been followed and (2) that the collection of the tax by the revenue authorities as if the tax due were an arrear of land revenue was not permitted under the statutes as they stand. I shall proceed to consider these two points in that order. The order of assessment was impugned on the ground that the taxing authorities had not issued the monthly demand notices as required by rule 15 of the Madras General Sales Tax (Turnover and Assessment) Rules. Rule 15 before it underwent amendment by notification dated 26th February, 1954, ran thus: (to quote only the material portions): "15(1). Rules 6 to 13 shall not apply to licensed tanners and other licensed dealers in hides or skins in respect of their dealings in hides or skins; but the provisions of this and the following rule shall apply to them in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sub-rule (4), but at the end of the year the total turnover for the year was ascertained and the tax due computed and demanded. The contention urged in these petitions is that dealers in hides and skins could be assessed only in the manner provided in rule 15 and that their tax liability had to be ascertained and assessed each month and that unless notices in Form B-1 setting out the tax due for the previous month was served on an assessee he could not be in default. In other words, the contention was that the assessing authority had no right to consolidate the total turnover for the several months for which notice in Form B-1 should be issued and demand the entire sum as the tax due by the assessee. It will be seen from the terms of rule 15 that payment month after month is only a provisional payment which has to be adjusted at the end of each year. In this connection it has to be borne in mind that under the main charging provision, section 3(1), every dealer pays for each year a tax on his total turnover for such year. In line with this section 9 enacts: "9. (1) Every dealer whose turnover is ten thousand rupees or more in a year shall submit such return...........in such ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : "(5) After the close of the year in which the provisional assessment as laid down in sub-rule (3) or (4) has been made, the assessing authority shall, after such scrutiny of the accounts and after such enquiry as he considers necessary satisfy himself that the returns filed are correct and complete and finally assess under a single order on the basis of returns, the tax or taxes payable under sections 3, 5 or 8-B(2) or under any notification issued under section 6(1) for the preceding year." Further a new sub-rule (6) was added making provision for the assessing officer demanding any excess that might be due from an assessee beyond what had been paid by him month after month already. The assessment order for 1953-54 with which W.P. No. 1231 of 1956 is concerned was passed on 24th March, 1955, that is, after the rule was amended in the manner indicated above. Learned counsel therefore conceded that his objection based upon the non-issue of monthly demands in Form B-1 could not apply to W.P. No. 1231 of 1956. In my judgment the new rules only clarify what was already implicit in the rules as they stood before the amendment. The orders therefore in relation to the assessment years 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enacts (to quote only the relevant words): "All arrears of revenue other than land revenue due to the State Government, all advances made by the State Government for cultivation or other purposes connected with the revenue..........and all sums due to the State Government.................may be recovered in the same manner as arrears of land revenue under the provisions of this Act, unless the recovery thereof shall have been or may hereafter be other- wise specifically provided for". Besides section 10 of the General Sales Tax Act there is no other special procedure prescribed for the recovery of the arrears of sales tax with the consequence that the exception contained in the last portion of section 52 of Act II of 1864 which I have extracted has no application. Reading these sections together it would appear to be clear that there being a sum due to the State Government as tax and this being specifically directed to be recovered as an arrear of land revenue and provision being made in the Revenue Recovery Act for the recovery of this sum in the same manner as an arrear of land revenue there was no scope for an argument of there being a lacuna in the machinery for collection. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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