BRIJLAL SACHDEVA Vs. COMMISSIONER OF SALES TAX
LAWS(MPH)-1980-4-20
HIGH COURT OF MADHYA PRADESH
Decided on April 23,1980

BRIJLAL SACHDEVA AND BROTHERS Appellant
VERSUS
COMMISSIONER OF SALES TAX Respondents


Referred Judgements :-

KANHAYYALAL SHIVSAHAY SHARMA V. DEPUTY COMMISSIONER OF SALES TAX,M.P. [REFERRED TO]
GHANSHYAMDAS VS. REGIONAL ASSISTANT COMMISSIONER OF SALES TAX NAGPUR [REFERRED TO]
COMMISSIONER OF SALES TAX VS. RAMESHLAL KESHAVLAL [REFERRED TO]


JUDGEMENT

- (1.)THIS order shall also dispose of Misc. Petition No. 837 of 1974 (Sargodha Soap Works, Jabalpur v. Commissioner of Sales Tax, M. P. ).
(2.)THE petitioner in both these petitions is M/s. Brijlal Sachdeva and Brothers, a dealer registered under the Madhya Pradesh General Sales Tax Act, 1958. Misc. Petition No. 836 of 1974 relates to the period from 21st October, 1962, to 31st March, 1963, and M. P. No. 837 of 1974 relates to the period from 1st April, 1963, to 31st March, 1964. The assessments for these periods were completed by the Sales Tax Officer on 9th March, 1965, by two orders passed on that date. The assessee filed appeals against these orders which were decided by the Appellate Assistant Commissioner on 22nd December, 1965, by two separate orders. By these orders passed in the appeals, the assessments were set aside and the cases were remanded for fresh assessment. The assessment in each case was then made by the Sales Tax Officer by two separate orders passed on 30th August, 1967. Two separate notices under Section 19 (1) were later issued by the Sales Tax Officer on 10th October, 1972, for reassessment. By these petitions under Article 226 of the Constitution, the petitioner challenges these notices.
(3.)SECTION 19 (1) of the Act with which we are concerned in these petitions, as it stood at the time when the assessment orders dated 30th August, 1967, were passed and the impugned notices for reassessment were issued, reads as follows :
19. Assessment of turnover escaping assessment.- (1) Where an assessment has been made under this Act or any Act repealed by Section 52 and if for any reason any sale or purchase of goods chargeable to tax under this Act or any Act repealed by Section 52 during any period has been under-assessed or has escaped assessment or assessed at a lower rate or any deduction has been wrongly made therefrom,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, in such manner as may be prescribed, to reassess the tax payable by such dealer 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 section quoted above is as amended by the M. P. General Sales Tax (Second Amendment) Act (No. 20 of 1964), which came into force on 22nd September, 1964 Date of assent of the Governor. Section 8 of the amending Act substituted the words "date of order of assessment" for the words "expiry of such period". The limitation for commencement of proceedings for reassessment before this amendment was five calendar years from the expiry of the period during which the escapement occurred. The effect of the amendment introduced by the amending Act is that the proceedings for reassessment can be commenced within five calendar years from the date of order of assessment.


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