9911796707
TMI Blog1971 (4) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel appearing for the petitioner, has raised the following contentions in support of the relief claimed: (1) That the extension of the Bengal Finance (Sales Tax) Act, 1941, to the State of Delhi was invalid and in any case no modifications could be made in the Act when extended to Delhi. (2) That the Assistant Sales Tax Officer in the instant case was in any event not competent to frame the assessment against the petitioner and to create a valid demand. (3) That the Delhi Sales Tax Rules, 1951, made by the Chief Commissioner, are inoperative and illegal because they were not laid before each House of Parliament as required by sub-section (4) of section 26 of the extended Act. (4) That the assessment order, in any view, is vit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of any corresponding law (other than a Central Act), which is for the time being applicable to Part C State. Mukherjea and Bose, JJ., held that this provision was intra vires except for the latter part referring to repeal or amendment. The same view was taken by the Supreme Court in Rajnarain Singh v. Chairman, Patna Administration Committee, PatnaA.I.R. 1954 S.C. 569. There is thus no substance in the grievance that acting under section 2 of the Part C States (Laws) Act, 1950, the Central Government could not extend the Act to the State of Delhi. The contention of the learned counsel that this extension could not be made with modifications mentioned in the notification is also without merits. Copy of the notification enumerating the mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired by, or under, the Act. Section 15 authorises the Commissioner, by order in writing to delegate any of his powers under the Act except those under sub-section (2) of section 22, i.e., the power to sanction prosecution of an offence under the Act. Acting under section 15 of the Act read with the relevant Rules, the Sales Tax Commissioner, by order dated 4th August, 1961, (annexure C), has empowered the Sales Tax Officer to make an assessment of tax, etc., to impose penalty, etc. According to rule 2(f) of the Delhi Sales Tax Rules, 1951, framed by the Chief Commissioner in exercise of his powers conferred by section 26 for carrying out the purpose of the Act, Sales Tax Officer means the person appointed by that designation by the Chief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The Sales Tax Rules, 1951, therefore, even though not placed before Parliament, are perfectly legal. The next contention of the learned counsel that assessment is vitiated because the demand was made after the lapse of more than 18 months is also without substance. All that sub-section (1) of section 11 of the Act requires is that if no returns are furnished by the prescribed date, or if the Commissioner is not satisfied that the returns furnished are correct and complete, the Commissioner shall, within eighteen months after the expiry of such period, proceed in such manner as may be prescribed to assess to the best of his judgment the amount of the tax due from the dealer. The word "proceed" used in the sub-section does not mean the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed order on 17th June, 1969. There was, therefore, no violation of the provisions of section 11 of the Act and the assessment order cannot be assailed on this ground. The learned counsel placed strong reliance on Khushi Ram Prem Chand v. Excise and Taxation Commissioner[1963] 65 P.L.R. 1003., where it was held that the words "proceed to assess" meant actual assessment and assessment must be completed within three years of the expiry of the period to which the assessment related. This case was under the East Punjab General Sales Tax Act (46 of 1948). Unlike section 11 of the Bengal Finance (Sales Tax) Act, 1941, as extended to Delhi, section 11 of the East Punjab General Sales Tax Act did not prescribe two periods of limitation. Further, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 6 of the Act specifying the tax-free goods. This item reads: "electrical energy". It was contended that electric fans were excluded under this item. Electric fans are certainly not "electrical energy". They work with electrical energy but are not "electrical energy" by themselves. They are electrical goods and as such are covered by item 18 of the First Schedule under section 5(1)(a) of the Act and tax is payable in respect of them by a dealer at the rate of ten paise in the rupee. Sales of electric fans were, therefore, rightly included by the Assistant Sales Tax Officer in the assessment order. In this view of the matter, this petition fails and is dismissed with costs. Counsel's fee Rs. 150. Petition dismissed. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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