COMMISSIONER OF SALES TAX Vs. BENSON INDUSTRIES

JUDGEMENT

(1.) M/s. Benson Industries was a firm which carried on the business of selling electrical goods in Chandni Chowk, Delhi They were registered as a dealer' under the Bengal Finance (Sales Tax) Act "1941 as extended to the Union Territory of Delhi, and, also, under the Central Sales Tax Act 1956 (the Local and the Central Act).

(2.) For the financial year 1968-69, proceedings for assessment were commenced, both under the Local and the Central Act, by serving notices on the firm in Form ST XIV requiring them to allend before the Sales Tax Officer on 20th January 1970. No. one appeared on behalf of the firm before the Sales Tax Officer on the appointed d^te. For almost three years thereafter, dates were fixed and notices to attend were sent to the firm, but still no one appeared on their behalf. Ulltimately. on 19th. December, 1972, the Sales Tax Officer proceeded ex parte, and made two orders of assessment : one under the Local and the other under the Central Act. Additional demands for tax were raised under both these orders.

(3.) Against those orders, one L. C. Goel, describing himself as an ex-partner of M/s. Benson Industries, filed two appeals before the Assistant Commissioner of Sales Tax. It was shown to the Assistant Commissioner that a letter dated 30th March 1972 had been sent to the Sales Tax Officer, intimating that the firm had been dissolved with effect from 25th March 1972. Along with tills letter were enclosed an attested copy of the deed of dissolution, the original registration certificates under the Local and the Central Act, and some unused "C' forms. This letter was admittedly received in the office of the Sales Tax Officer on 30th March 1972, but for some reason or other, he did not advert to it in the assessment Orders made by him.