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TMI Blog1962 (10) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, 1956 (hereinafter referred to as "the Central Act"). Against the said order of assessment, the assessees preferred an appeal before the Assistant Commissioner of Commercial Taxes, Warangal. The assessees mainly contended before the appellate authority that the assessment, having not been made before the expiry of four years from the year to which the assessment related as provided under section 14(1) of the Act, was clearly barred by limitation. The appellate authority held that since the assessee failed to submit the return within the prescribed date, the assessment could be completed under section 14(3) of the Act read with section 9(2) of the Central Sales Tax Act within six years, i.e., before 31st March, 1975, and the assessment in question having been made on 2nd August, 1973, was not barred by limitation. Consequently, the appeal was dismissed. The assessees carried the matter in appeal before the Sales Tax Appellate Tribunal. The only point urged before the Appellate Tribunal was that the assessment in question was barred by limitation prescribed in the statute and therefore the assessment was invalid and unenforceable. The Tribunal also agreed with the appellate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years from the expiry of the year to which assessment relates, after issuing a notice to the dealer and after making such enquiry as he considers necessary, assess to the best of his judgment the amount of tax due from the dealer on his turnover for that year, and may direct the dealer to pay in addition to the tax so assessed, a penalty as specified in sub-section (8)." An assessment is to be made under section 14(1) when the assessing authority is satisfied that the return submitted by the dealer is correct and complete. In case he is not satisfied about the correctness and completness of the return he may make the assessment to the best of his judgment under section 14(1) after giving a fair opportunity to the dealer to prove the correctness and completeness of the return and making such enquiry as he deems necessary. In either case, the assessment shall be made under section 14(1) within a period of 4 years from the expiry of the year to which the assessment relates. To attract the provisions of sub-section (3), (i) a dealer must have failed to submit the return before the date prescribed in that behalf or (ii) produced the accounts, registers and other documents after insp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore be an appeal in the eye of law, though having been presented beyond the period mentioned in section 30(2), it is liable to be dismissed in limine." It was, below down, further observed: "On the principles laid down in these decisions, it must be held that an appeal presented out of time is an appeal, and an order dismissing it as timebarred is one passed in appeal." It must therefore be held that a return submitted after the prescribed time is as much a return as one submitted within the prescribed time under section 14(1) of the Act, unless the return is rejected and not acted upon. Further, in this case, the return is accepted as correct and complete and assessed on the basis of the return submitted by the dealer. The assessment is not made on the basis of best judgment of the assessing authority. Therefore, we have no hesitation in holding that the assessment in this case was passed under section 14(1) of the Act and not under section 14(3) of the Act and the order of the assessment passed, as it is beyond the period of four years, is invalid and unenforceable. The Supreme Court in State of Madras v. S.G. Jayaraj Nadar Sons [1971] 28 STC 700 (SC), observed: "W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te the assessing authority shall after making such enquiry as he considers necessary and after giving the dealer an opporunity of proving the correctness and completeness of the return or returns submitted by him determine the turnover to the best of his judgment and finally assess in a single order the tax or taxes payable under the Act. (8) If, for any reason, the whole or any part of the turnover of business of a dealer has escaped assessment to tax or has been under-assessed in any year, the assessing authority may after issuing a notice to the dealer and after making such enquiry as he considers necessary determine to the best of his judgment the correct turnover, and assess the tax payable on such turnover- (a) within a period of six years from the expiry of the year to which the tax relates, if any such event has occurred on account of the failure of the dealer to disclose the turnover or any other particulars correctly; (b) within a period of four years from the expiry of the year to which the tax relates, if any such event has occurred due to any other causes. (9) If, for any reason, any tax has been assessed at too low a rate in any year, the assessing authority m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Sales Tax (Amendment) Act, 1969, embrace all the powers that the assessing authority had under the sales tax law of the State in force during the relevant assessment year." We are unable to appreciate how the contention of the revenue is supported by this decision. In the latter case, the Supreme Court dealing with the scope of section 11 of the Punjab General Sales Tax Act, 1948, observed: "But the legislature advisedly did not fix any period of limitation for taking up of the steps or the passing of the assessment order under any of the sub-sections (1), (2) or (3). The reason is obvious. Best judgment assessments in the circumstances mentioned in any of the sub-sections (4), (5) or (6) could not be allowed to be made after the expiry of a certain reasonable time which the legislature thought was three years previously but made it five years by Punjab Act 28 of 1965. But where a registered dealer has filed the return the Assessing Authority can pass the assessment order under sub-section (1) and accept the return filed by the dealer as correct and complete. In such a case the formality of passing an order of assessment is to be completed without any further demand of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y such a dealer under the Act was tax payable under the general sales tax law of the State, and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State." The Supreme Court again in State of Kerala v. Pothan Joseph Sons [1970] 25 STC 147 (SC) also expressed the same view, viz., that the general sales tax law of the State which would include the Rules framed thereunder governed the levy and assessment of the tax in the matter of inter-State sales. A Division Bench of this Court in an unreported decision in T.R.C. No. 58 of 1966 dated 28th January, 1970 (K.C.P. Ltd. v. State of Andhra Pradesh 1971, Tax LR 326.) "In view of what is stated in section 9(2) of the Central Sales Tax Act, 1956, and having regard to the limitation prescribed under section 14(1), it will be futile to contend on behalf of the State that section 9(2) empowers the authorities under the Andhra Pradesh General Sales Tax Act to make an assessment invoking the provisions of the Central Sales Tax Act without regard to the period of limitation prescribed under section 14(1)." Again, another Division Bench of this Court in Mohd. Akhalaq Ahmed v. State ..... X X X X Extracts X X X X X X X X Extracts X X X X
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