- (1.) THIS is a revision application by the assessing authority u/s 14 (1) of the R. S. T. Act against the order dated 19-9-68 by the Dy. Commissioner, Commercial Taxes (Appeals), Udaipur, in respect of assessment for the period 1-11-63 to 14-3-64 in the case of M/s Rajasthan Craft Centre, Udaipur.
(2.) THE assessing authority assessed the dealer for sales commencing 1-11-63. THE Dy. Commissioner, however, set aside the tax for the months of November and December, 1963 on the ground that at the time of granting registration certificate the assessing authority had held liability to tax as commencing from 1-1-64. Liability to tax arises with reference to the extent of turnover of a dealer in accordance with the provisions of Sec, 5 of the R. S. T. Act. Sub Section (2) thereof governs the case of dealer who had no business in the previous year. Under Section 6, a dealer liable to pay tax is liable to get himself registered. Registration, thus, follows liability, Liability itself is not dependant on registration. What should have been done in this case, therefore, is to examine the question of liability in terms of Section 3 and particularly sub-Section (2) thereof as it was a new business. This was not done by the assessing authority clearly. Although at the time of granting registration he does appear to have considered the quantum of sales for November and December, 1963, he did not specifically examine the matter with reference to Sec. 3 (2 ). The appellate authority also did not go into the matter and passed his order on the sole ground that the assessing authority had taken in the assessment a view different from what he took at the time of registration. The revision application is, therefore, accepted and the case is remanded to the Dy. Commissioner for re-examining the case in the light of observations in paras 3 ana 4 above a d passing a fresh order. .;