STATE OF MADRAS Vs. S BALU CHETTIAR

JUDGEMENT

(1.) T. R. C. No. 54 of 1955 -- The assessee was a dealer as defined by the Madras general Sales-tax Act. He did not get himself registered as a dealer in the assessment year, 1951-52, under the provisions of the Act. When the Deputy commercial Tax Officer, the assessing authority, took steps to assess the assessee, on a provisional basis under the rules, for 1952-53, the accounts-of the assessee for 1951-52, were also examined on 14-9-1953. On 4-1-1954 a notice was Issued to the assessee to show cause why he should not be assessed on his turnover for the assessment year 1951-52. The assessee did not submit any return-even after the receipt of the notice. On 16-1-1954 the deputy Commercial Tax Officer estimated the turnover of the assessee for 195152 at Rs. 33,016-1-5 on the basis of the entries in the assessee's books themselves, and assessed him to pay a tax of Rs. 515-14-0. On Appeal the Commercial Tax Officer confirmed the assessment. On further appeal by the assessee to the Tribunal, the assessment was set aside. The tribunal was of the view, that the case of the assessee had to be dealt with under rule 17 (1) of the General Sales-tax Rules,, and it pointed out that the period of limitation prescribed by the rule, as it stood at the relevant period, expired on 313-1953- The Government applied under Section 12-B of the Act to revise the order of the Tribunal.

(2.) THE contention of the learned Government Pleader was that Rule 17 (1) did not apply to the case of the assessee, as it was a case of an assessment for the first time, for completing which no period of limitation was prescribed by any of the rules. That if Rule 17 (1) applied the view taken by the Tribunal would be right was not challenged. So the question is, did the assessment in question come within the scope of Rule 17 (1 ).

(3.) THE relevant portion of Rule 17 (1), before it was amended, ran thus :