9911796707
TMI Blog1985 (12) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... jwayan, sua, methi and poppy seeds. He also levied sales tax on urad, gram and bardana. Penalties were imposed under section 7AA and section 16(1)(c) of the Act. The dealer-assessee went in appeal and the Deputy Commissioner (Appeals), Commercial Taxes, Ajmer, by a common order dated 13th April, 1976, accepted the appeals in part. Six revisions were filed against the order of the Deputy Commissioner (Appeals), Commercial Taxes, Ajmer. These were against the appellate order dated 13th April, 1976, and revision No. 971 of 1976 was against the order dated 22nd April, 1976. The Board of Revenue by its common order dated 2nd March, 1979, partly accepted the seven revisions. The Board found as under: (1) that the penalties were rightly imposed upon the dealer-assessee under section 16(l)(c) of the Act; (2) that the assessing authority should determine the tax to be levied on the sales of sua, methi and ajwayan deeming these commodities to be oil-seeds and, therefore, declared commodities under section 14 of the Central Sales Tax Act, 1956 (No. 74 of 1956) ("the C. S. T. Act" herein); (3) that urad and gram cannot be treated as cattle feed; (4) that proceedings were commenced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch provides for charging sales tax on the goods sold outside the State and goods sold inter-State under the guise of purchase tax and is, therefore, ultra vires? (8) Whether urad (black gram) and gram are cattle feed and exempt from tax under item No. 9 of the Schedule? (9) Whether the penalty under section 16(1)(c) of the Act can be imposed on the assessee even where the department has failed to prove that the assessee had no reasonable cause for not filing the return? (10) Whether interest under section 11B can be charged for not depositing the tax under section 7(2A) for monthly advance payment? When these cases were partly heard on 11th December, 1985, Mr. K.C. Bhandari, learned counsel for the C.T.O., submitted that notice under section 10(1) of the Act was issued to the dealer-assessee in respect of the assessment years under consideration and not under section 12 of the aforesaid Act. On that day for the proper appreciation of the arguments that were raised by the learned counsel for the parties, we considered proper to direct Mr. K.C. Bhandari, learned counsel for the C.T.O., to obtain the record of the assessments of the dealer-assessee in respect of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that urad and gram being cattle feeds, they are exempt from payment of sales tax under section 4 of the Act. According to item 9 of the Schedule, the cattle feeds which do not include gowar, cotton-seeds and oil-cakes, no sales or purchase tax is payable. In Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan [1980] 46 STC 256 (SC), a question arose whether the word "fabric" includes tyre cord fabric for deciding the question of exemption from tax. His Lordship R.S. Pathak, J., speaking for the court held as under: "In determining the meaning or connotation of words and expressions describing an article or commodity the turnover of which is taxed in a sales tax enactment, if there is one principle fairly well-settled, it is that the words or expressions must be construed in the sense in which they are understood in the trade, by the dealer and the consumer. It is they who are concerned with it, and it is the sense in which they understand it that constitutes the definitive index of the legislative intention when the statute was enacted." (Underlining* is ours) According to this decision the words and expressions are to be construed in the sense in which they are underst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales tax on bardana. The Board has stated that the reasons given by the Deputy Commissioner in this respect in his order dated 17th May, 1976 are good reasons. It has been found by the Deputy Commissioner as a fact that the sale was of old gunny bags. As the old gunny bags were separately sold, the sales tax was leviable on such sales. The learned counsel appearing for the dealer-assessee did not show us any provision in the Sales Tax Act or in any other relevant law under which the sale of old gunny bags was exempt from payment of sales tax. The burden was on the dealer-assessee which he has failed to discharge. The other contentions Nos. (1), (3), (4) and (6) referred to hereinabove raised by the learned counsel for the dealer-assessee are with respect to the assessments made by the assessing authority of the taxable turnover of each accounting year. On the basis of the provisions contained in sections 7(1), 7A, 10(1)(a) and (b), 10(2) and 10B of the Act then in force it was submitted that the assessments made are illegal and void. He also urged that section 12 of the Act could not be attracted as admittedly no notice was given and the conditions laid down therein are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings were initiated against the dealer-assessee under section 12 for which issue of the notice even after a period of 8 years from the date of closure of the assessment is a sine qua non. Mr. Bhandari, learned counsel for the C.T.O., argued that the proviso to section 10(1)(b) of the Act as in vogue at the relevant time is not relevant for the purpose. In this connection he invited our attention to the definition of "previous year" contained in section 2(m) of the Act. According to him reference of the previous year is in respect of the "previous year" as defined in section 2(m) of the Act. Section 10(2) will also not apply, for, according to him returns were filed by the dealer-assessee, may they be in pursuance of the notice. It was submitted that prior to 7th April, 1979, i.e., before insertion of section 10B of the Act, there was no bar of limitation whatsoever and further that once the return has been filed then it is open to make assessment at any time, as for making the assessment there is no period of limitation. In other words, it was urged that in spite of sections 7(1), 7A and 10(1)(b) returns when filed assessments can be made at any time and bar of limitation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forma prescribed for return in form S.T. 5 and so they will be considered valid returns in the eye of law. According to him, these consolidated statements can easily be construed as sufficient compliance with form S.T. 5 particularly when the information required in column 11 thereof has been given. (2) that, even if, the assessee has filed return for one quarter that will ensure for whole of the assessment year for the purpose of making the assessment. (3) that, even if, no return has been filed as envisaged by section 7(1) of the Act, the consolidated statement filed by the assessee can be availed of by the assessing authority for making the assessment. Undoubtedly in view of the rival submissions, various questions of law arise which require probe on the basis of the record of the assessment years under consideration. Before the Board as appears from the order dated 2nd March, 1979, the contention raised on behalf of the dealer-assessee was that although the period of limitation for purposes of section 12 of the Act was 8 years but this limitation by implication would also apply to assessment made under section 10 of the Act. The contention with respect to sections 7(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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