9911796707
TMI Blog1965 (10) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the assessee's failure to furnish a return of turnover brings the assessee's case within the purview of section 15 of the "Act"? Mr. K. Srinivasan, the learned counsel for the assessee at the outset of his arguments represented that the first question has not been properly formulated, as the Tribunal should have also included therein the assessee's assessment for the year ending 31st March, 1957. From the facts of the cases to be presently stated, it is obvious that the parties as well as the Tribunal overlooked the assessee's challenge to the validity of assessment for the year 1956-57. The Tribunal had merely adopted the questions formulated in the assessee's applications. Hence the assessee should blame itself for the error. As we have come to the conclusion, for the reasons to be presently stated, that all questions referred to us should be answered against the assessee, we do not think that there is any need either to re-frame the first question or to ask the Tribunal to submit a fresh question for the opinion of this Court. The facts material for the purpose of deciding these references are: The assessee is carrying on business in Hubli under the name and style of Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such returns by such dates and to such authority as may be prescribed: Provided that the Collector may, subject to such terms and conditions as may be prescribed, permit any dealer required to furnish returns under this section, to furnish them for such different periods as he may direct. (1A) If in consequence of any information which has come into his possession, the Collector is satisfied that either the turnover of sales or the turnover of purchases of any dealer has during any year, exceeded or is likely to exceed- (a) Rs. 8,000, in the case of a dealer falling under clause (i) or (ii) of sub-section (1) of section 5; (b) Rs. 20,000, in the case of any other dealer, he may by notice served in the prescribed manner require such dealer to furnish returns as if he were a dealer liable to pay tax, but no tax shall be payable by such dealer otherwise than in accordance with the provisions of this Act. (2) If any dealer having furnished returns under sub-section (1) discovers any omission or wrong statement therein, he may furnish a revised return before the expiry of three months next following the period to which such return relates." Every assessee has to submit hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has come into his possession the Collector is satisfied that any dealer has been liable to pay the tax in respect of any period but has failed to apply for registration, the Collector shall, after giving the dealer a reasonable opportunity of being heard, assess to the best of his judgment, the amount of the tax, if any, due from the dealer in respect of such period and all subsequent periods. (7) In cases where the Collector, while making an assessment under sub-section (6), is satisfied that the dealer has wilfully failed to apply for registration, the Collector may direct the dealer to pay by way of penalty, in addition to the amount of the tax assessed under sub-section (6), a sum not exceeding one and half times that amount. (8) Any assessment made under the section shall be without prejudice to any prosecution for an offence under this Act." Section 15 provides for the assessment of a turnover escaping assessment. The main part of that section reads: "If in consequence of any information which has come into his possession the Collector is satisfied that any turnover in respect of sales or purchases of any goods chargeable to the tax has escaped assessment in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving the dealer a reasonable opportunity of being heard, assess to the best of his judgment, the amount of the tax, if any, due from the dealer. This section deals with the assessment of turnovers which have not been assessed. Section 15, as mentioned earlier, deals with turnovers which have escaped assessment. Before making assessment under section 15, the assessing authority is required to serve on the dealer liable to pay tax, a notice within the time prescribed therein. He can proceed to assess the dealer only after the service of such a notice. In view of the decision of the Supreme Court in Ghanshyamdas v. Regional Assistant Commissioner of Sales Tax, Nagpur, and Others[1963] 14 S.T.C. 976., we have to hold that a turnover which has not been assessed and in respect of which no assessment proceedings were initiated within the time prescribed has to be held as an escaped turnover. On the authority of that decision we have to further hold that assessment proceedings relating to that turnover should be initiated within the time prescribed for assessing the escaped turnover. But, Mr. Srinivasan wants us to go further and hold that such a turnover can only be assessed in accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time prescribed under section 15. In the present cases the assessing authority had proceeded to assess the assessee under section 14(5). He had given to the assessee a notice in Form 13 and that notice was given within the time prescribed by section 15. Therefore, we see nothing illegal about it. The next contention of Mr. Srinivasan was that, though notice in Form 13 was given within three years from the end of the assessment year, the assessments were made after three years and hence they are invalid. According to him, section 15 requires that the assessment under that provision should be made within three years from the end of the year of assessment. He contended that the expression "proceed to assess" in section 15 really means "assess". In support of that contention, he placed reliance on the majority judgment of the Punjab High Court in Rameshwar Lal Sarup Chand v. Shri [1963] 14 S.T.C. 976. U.S. Naurath, Excise and Taxation Officer, Assessing Authority, Amritsar and Another[1964] 15 S.T.C. 932. For the purpose of these cases, it is not necessary to examine the correctness of that decision. What is required under section 14 of the "Act" is to serve on the dealer li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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