9911796707
TMI Blog1967 (3) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ears 1955-56, 1956-57 and 1957-58. The scope for dispute has arisen on account of the repeal of the Madras General Sales Tax Act, 1939 (Madras Act 9 of 1939) which has been replaced by the Andhra Pradesh General Sales Tax Act, 1957, with effect from 15th June, 1957. The petitioner is a dealer in tamarind, charcoal and groundnut etc. He submitted his returns for the said years and was assessed to sales tax by the Assistant Commercial Tax Officer, Palmaner. On 9th May, 1959, the said tax officer paid a surprise visit to the business premises of the petitioner and recovered private account books disclosing turnovers which were not accounted for in the regular books of accounts submitted for the said years. On this turnover which escaped asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he charging section 3 in no uncertain terms declared to that effect. The obligation is absolute and is dependent on no other factor. The Act at the same time provides a machinery for quantifying and collecting the same. As the tax is leviable on the total turnover, the extent thereof is determined by process of assessment in the prescribed manner. As and when the tax is thus quantified, the assessee, subject to the result of appeal and revision, has to pay the same on pain of penalty and recovery thereof as though it were government dues. As the obligation to pay is according to the total turnover, if for any reason any part of the turnover for a particular year has escaped assessment, rule 17 of the Madras General Sales Tax Rules, 1939, em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1939 (Madras Act 9 of 1939), the Hyderabad General Sales Tax Act, 1950 (Hyderabad Act 14 of 1950), the Madras Tobacco (Taxation of Sales and Registration) Act, 1953 (Madras Act 4 of 1953), the Andhra General Purchase Tax Act, 1956 (Andhra Act 13 of 1956), and section 21-A of the Madras Prohibition Act, 1937 (Madras Act 9 of 1937), are hereby repealed: Provided that such repeal shall not affect the previous operation of the said Acts or section or any right, title, obligation or liability already acquired accrued or incurred thereunder, and subject thereto, anything done or any action taken (including any appointment, notification, notice, order, rule, form, regulation, certificate, licence or permit) in the exercise of any power conferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and essentially from the charging section itself. It is not made dependent on the assessment which is but a process or means of quantifying the extent of the tax enjoined by the charging section. The charging section creates the liability and the process of assessment and collection are means of giving effect thereto. A dealer incurs obligation to pay tax by the very reason of his transactions of purchases and sales for the year, though the enforcement of this liability, for obvious reasons, is postponed till the assessment is made. Thus, when a statute in clear terms imposes an obligation for purchases and sales which are exigible to tax, it is idle to contend that the obligation to pay tax arises only on assessment. The creation of the ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in certain income-tax cases, the learned Chief Justice, who delivered the opinion of the Court, held in the case mentioned above, that the liability to pay tax springs from the charging section which imposes obligation to pay tax. It is not dependent on the assessment. He further held that the expression "liability.....incurred thereunder" used in the proviso to section 41(1) of the Andhra Pradesh General Sales Tax Act denotes taxability. The proviso protects all obligations incurred by virtue of purchase and sale made under the repealed Act. When once that is saved it is open to the department to quantify that obligation or liability and collect it. We are in respectful agreement with these conclusions and the reasons given therefor. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s section, i.e., section 14(4-A) came into force. That being the case, it follows the extended period of limitation would apply. Perhaps the case would have been different if the period of 3 years had expired before the extended period of limitation had come into force. In Munaga Peraiah v. The State of Andhra Pradesh[1962] 13 S.T.C. 26., this Court has held that where the period of limitation prescribed by law was enlarged before the right of the assessing authority to reassess was barred, it is the amended law that determines the liability of the assessee. Therefore the assessing authority would be well within its right in making the additional assessment within four years next succeeding the assessment year. It was further held that an a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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