9911796707
TMI Blog1990 (7) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... tween November 11, 1977 to October 31, 1978, on a gross turnover of Rs. 3,15,000 by the Assistant Sales Tax Officer, Jabalpur, (in short, "the Asstt. S.T.O.") by his assessment order dated October 25, 1979. Subsequently on the basis of a report of the Flying Squad, the Asstt. S.T.O. initiated reassessment proceedings under section 19(1) of the Act and directed issuance of notice for the purpose on July 4, 1980. Notice (annexure B) was served on the petitioner and it made appearance before the Asstt. S.T.O. on July 28, 1980, through its proprietor Shri Prem Chand Jain. The reassessment proceedings continued before the Asstt. S.T.O. till November 1, 1981, when they were transferred to the Addl. S.T.O., on the ground that the proposed escaped ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant clause (c) in column (3) at serial No. 7 of the Table given in rule 68 of the M.P. General Sales Tax Rules, 1959 (in short, "the Rules"), providing for delegation of Commissioner's powers and submitted that in the present case the Asstt. S.T.O. had powers to initiate the reassessment proceedings under section 19(1) of the Act and, therefore, in the absence of provisions for re-initiation of reassessment proceedings or for fresh notice of reassessment under section 19(1) of the Act after transfer of a case from the Office of the Asstt. S.T.O. to the Office of the Addl. S.T.O., the reassessment proceedings initiated by the Asstt. S.T.O. ought to have been completed within a period of 2 calendar years from the date of their initiati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easonable opportunity of being heard and after making such enquiry as he considers necessary, proceed in such manner as may be prescribed to reassess within a period of two calendar years from the commencement of such proceedings, the tax payable by such dealer and the Commissioner may, where the omission leading to such reassessment is attributable to the dealer, 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." Rule 68 and the entries of clause (c) in column (3) at serial No. 7 of the Table at the relevant time were as follows: "The Commissioner shall not delegate any powers other than those enumerated below, in respect of the (section/rules) mentioned i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessment or reassessment of tax in respect of a dealer whose gross turnover of the year preceding the period of assessment did not exceed rupees 4 lakhs. As the petitioner's preceding year turnover admittedly did not exceed rupees 4 lakhs, the Asstt. S.T.O. had jurisdiction to initiate reassessment proceedings under section 19(1) of the Act against the petitioner. Accordingly the initiation of proceedings on July 4, 1980 and issuance of notice under section 19(1) of the Act by him could not be said to be without jurisdiction and, therefore, there was no necessity for issuance of any fresh notice under section 19(1) of the Act after the case was being transferred to the Addl. S.T.O. This appears to be the reason why after the transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the original assessment, was misconceived and without jurisdiction. The reason is simple. Section 19(1) does not contemplate re-initiation of reassessment proceedings or issuance of fresh notice for reassessment. If such power of re-initiation or issuance of fresh notice for reassessment is inferred in section 19(1) of the Act, it would result in arming the taxing authorities with powers to renovate the proceedings of reassessment on their failure to make reassessment within 2 calendar years from the date of commencement of such proceedings, in case they find the period of 5 calendar years prescribed under section 19(1) of the Act for reopening the case had not expired. For all these reasons, the impugned notice dated March 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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