BANGALI MAL BHARGAVA Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THIS is a reference under Section 11(1) of the U.P. Sales Tax Act at the instance of the assessee.

(2.) THE assessee is a dealer in foodgrains. In respect of the assessment year 1956 -57, the assessee applied for exemption under Rule 20 -B of the U.P. Sales Tax Rules. Exemption order was passed on 30th March, 1961, determining the amount of exemption fee payable by the assessee. The assessee was required by a notice to pay the exemption fee by a certain date. This notice was not complied with, with the result that it became necessary for the department to pass an assessment order against the assessee under Rule 23. Accordingly, the Sales Tax Officer issued a notice under Section 21. No compliance appears to have been made of that notice, whereupon an assessment order was passed on 20th April, 1961.

(3.) THE revising authority took the view that an order passed under Rule 23 was neither an order under Section 21, nor an order under Section 7(3). In its opinion, it was a consequential order on the failure of the assessee to comply with the exemption order passed under Rule 20 -B. For such an order there was no period of limitation. At the instance of the assessee, the revising authority has referred the following three questions for our opinion :