9911796707
TMI Blog1974 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... 9th July, 1962. The department further scrutinised the affairs of the respondent and found that the assessment made was low. Consequently, a notice dated 15th February, 1965 (vide annexure B) was issued to the respondent to show cause as to why the assessment made be not revised. That notice was served on the respondent on 17th February, 1965. In pursuance of that an order of reassessment was passed on 22nd September, 1965, wherein the assessment was enhanced. Aggrieved by that order the respondent filed an appeal before the Appellate Assistant Commissioner, who by order dated 24th January, 1966 (vide annexure D), dismissed the appeal. The respondent filed a second appeal against that order and the Board of Revenue by order dated 25th January, 1967, allowed the assessee's appeal and held that the reassessment proceedings were barred by time in view of section 19(1) of the Act. Consequently, the second appeal was allowed and at the instance of the department, the present reference has been made. At this stage it may be pertinent to note that section 19 of the M.P. General Sales Tax Act, 1958, was amended by M.P. Amendment Act No. 20 of 1964. There were some amendments made in the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, it did not amend section 19 of the Act. Thereafter, the M.P. General Sales Tax (Second Amendment) Act No. 23 of 1963 was enacted, which effected some change in section 19 of the Act. Section 3 of the amending Act provided that "in sub-section (1) of section 19 of the principal Act, after the words 'this Act' occurring twice, the words and figures 'or any Act repealed by section 52', shall be inserted". The amendments made by section 3 of the amending Act were given retrospective operation from the commencement of the principal Act. This also would have no effect on the present case. 5.. Thereafter, the M.P. General Sales Tax (Amendment) Act No. 20 of 1964 was enacted. Section 8 of the amending Act provided that "in sub-section (1) of section 19 of the principal Act, for the words 'expiry of such period', the words 'date of order of assessment' shall be substituted". Therefore, by this Act the limitation of five years was to be computed not from the expiry of such period, but from the date of order of assessment. This amendment was made by section 8 of the amending Act. Although section 21 of the amending Act provided for retrospective operation of other amendments, the amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it for granted that limitation will start from 31st October, 1959, as the assessment was to be made for the period from 1st April, 1959, to 31st October, 1959. Obviously, this interpretation was erroneous in view of the definition of the word "year", which clearly means a financial year and, as such, the starting point of limitation will be five years from 31st March, 1960. 7.. This case was referred to a Full Bench as the Division Bench hearing this reference was of the view that the view taken by another Division Bench of this Court in Jeewakhan Musabhai, Ujjain (Firm) v. Madhya Pradesh State1970 M.P.L.J. 220. would require reconsideration in the light of the pronouncement of their Lordships of the Supreme Court in Ghanshyamdas v. Regional Assistant Commissioner of Sales Tax, Nagpur[1963] 14 S.T.C. 976 (S.C.); A.I.R. 1964 S.C. 763. We may observe that the case of Jeewakhan Musabhai, Ujjain (Firm) v. Madhya Pradesh State1970 M.P.L.J. 220. was clearly governed by the M.P. General Sales Tax (Amendment) Act No. 20 of 1964, which effected a substantial change in section 19(1) of the M.P. General Sales Tax Act, 1958. That situation does not obtain in the present case, which is govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om, the Commissioner may, at any time within five calendar years from the expiry of such year, after giving the dealer a reasonable opportunity of being heard and after making such enquiry as lie considers necessary, proceed, in such manner as may be prescribed, to reassess the tax payable on any such sale or purchase and the Commissioner may direct that the dealer shall pay, by way of penalty in addition to the amount of tax so assessed, a sum not exceeding that amount............." The notice of reassessment was issued on 15th February, 1965. At that time section 19(1) was in the following shape: "19. (1) Where an assessment has been made under this Act, or any Act repealed by section 52, and if for any reason any sale or purchase of goods chargeable to tax under this Act or any Act repealed by section 52 during any period has been under-assessed or has escaped assessment or assessed at a lower rate or any deduction has been wrongly made therefrom, the Commissioner may, at any time within five calendar years from the date of order of assessment, after giving the dealer a reasonable opportunity of being heard and after making such enquiry, as he considers necessary, proceed, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se(2), the Supreme Court counted the period of reassessment on the footing as if a calendar year meant a year, i.e., a year commencing from any date and ending on the corresponding date in the next year and not necessarily a year commencing from 1st January. The point regarding the distinction between a calendar year and a year was, however, not argued before the Supreme Court. In Kanhayyalal v. Deputy Commissioner, Sales Tax[1958] 9 S.T.C. 503; 1958 M.P.L.J. 343., a Full Bench of this Court held that a calendar year meant a year beginning from 1st January and ending on 31st December and this was the view which was followed in Musabhai's case(1). 5.. I find myself in agreement with the view of my Lord the Chief Justice that the notice of reassessment was within limitation even in accordance with the provisions of section 19, as it stood during the period of assessment. According to the section, as it then stood, the limitation for reassessment commenced from the expiry of the year during which any sale or purchase of goods had been under-assessed or had escaped assessment. The word "year" is defined to mean twelve months ending on 31st of March or at the option of the dealer, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
