ASSISTANT COMMISSIONER Vs. GRASIM INDUSTRIES LTD

JUDGEMENT

(1.) This appeal has been preferred by the State of Kerala and the Assistant Commissioner (Appeals), Department of Commercial Taxes, aggrieved by some of the observations of the learned single Judge, especially with regard to the interpretation of Rule 32(21) of the Kerala General Salestax Rules and also with regard to the finding of the learned single Judge that respondent has no obligation to produce accounts after the expiry of four years of the assessment year to which it relates.

(2.) Original Petition was preferred by the respondent herein seeking a writ of certiorari to quash Exts.P1 to P14 notices in Form No. 50 calling upon the respondent to produce books of accounts for the year 1979-80 to 1992-93. Notices were challenged on the ground that respondent is bound to maintain books of accounts only for a period of four years after the assessment year. It was pointed out that Exts.P1 to P14 notices were issued beyond the period stipulated in Rule 32 and the respondent is not bound to produce the books of accounts as directed in Exts. P1 to P14. It was also pointed out that Section 17(6) stipulates that any assessment under this Section shall be completed within a period of four years from the expiry of the year to which the assessment relates. Reference was also made to the decision in Geo Sea Foods v. Additional Sales Tax Officer 119 STC 237 and submitted that pending assessments are to be completed within a reasonable time. Applying the same principle, according to the respondent, Exts. P1 to P14 notices are also liable to be quashed. Reference was also made to Section 17A of the Act and submitted that Exts. P1 to P14 would not fall under that Section as well. Further it is also pointed that though respondent had filed O.P.No. 2805 of 1996 this Court had granted stay only against the assessment of stock transfer between two divisions of the company and there was no bar in completing the remaining part of the assessment for the years 1979-80 to 1992-93.

(3.) Detailed counter affidavit has been filed in the Original Petition. It was pointed out that as per Sub-rule (2) of Rule 32, every dealer liable to get himself registered under the Act, shall keep and maintain the books of accounts disclosing true and complete accounts with all vouchers, weigh bills and delivery notes relating to the stocks, delivery, purchases, out put and sales shall be preserved by the assessee for a period of four years after the close of the year to which they relate to or from the disposal of the appeal or revision arising out of such assessment or from the date of completion of any other proceeding under the Act connected with such assessment or appeal or revision, whichever is later and shall be kept at the place of business mentioned in the certificate of registration. Further it was pointed out that the respondent cannot take shelter under Rule 32 as the assessing authority was prevented from making any assessments from 1979-80 onwards in view of the stay order obtained by the respondent in O.P.No. 2805 of 1996. Further as per Section 17A of the Act all assessments upto 1992-93 are kept alive and hence Exts. P1 to P14 notices are not hit by the law of limitation.