RAMAYANA PRINTING WORKS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE only question that arises in this tax case is, whether the assessee is entitled to claim the benefit of compounding allowed under section 7 of the Tamil Nadu General Sales Tax Act, 1959.

(2.) THE assessing authority, the appellate authority as well as the Tribunal have all held that since the assessee sought permission to be assessed under section 7 only at the time of final assessment, that is, long after the period mentioned in rule 15(1) of the Tamil Nadu General Sales Tax Rules, 1959, he cannot claim to be assessed under section 7 of the Act.

(3.) AN identical question cam up for consideration before a Division Bench of this Court consisting of Sethuraman and Balasubrahmanyan, JJ., twice, once in State of Tamil Nadu v. Ball Bearing Centre and again in State of Tamil Nadu v. Shanthi Stainless Steel Co. After hearing both sides elaborately, on both the occasions, the Bench took the view that even after the deletion of sub-rule (4-B) of rule 15 of the Tamil Nadu General Sales Tax Rules, 1959, on 27th September, 1971 the assessee is entitled to exercise the option at any time before the final assessment. Section 7 by itself does not impose any time-limit for exercising the option. Therefore, it should be held that the assessee could exercise the option within a reasonable time.