STATE OF ANDHRA PRADESH Vs. DONTHALA RAJAIAH

JUDGEMENT

(1.) The Government of Andhra Pradesh has applied under section 22 (1) of the Andhra Pradesh General Sales Tax Act to revise the order of the Sales Tax Appellate Tribunal accepting the appeal of the respondent.

(2.) The respondent, who is a dealer in Kirana, oil-seeds, tobacco and cloth, made a return voluntarily on the 30th of December, 1955, for the assessment year 1952-53 showing a taxable turnover of Rs. 7,240. The Sales Tax Officer, after taking the return on file, rejected it as incorrect and incomplete and made a best judgment assessment on 2nd May, 1956, on a turnover of Rs. 30,000 for the first time. The appeal carried by the assessee to the Deputy Commissioner, Appellate Sales Tax, proved unsuccessful. On further appeal to the Sales Tax Appellate Tribunal, the assessment was set aside as being time-barred. In this revision, the view of the Tribunal is canvassed.

(3.) It is urged on behalf of the revenue that the assessment in dispute being an original assessment, it is not barred by time as no time is prescribed, for making the assessment by the Hyderabad General Sales Tax Act. On the other hand, the position taken by the assessee is that as the return was not filed before the 15th of May, 1953, as prescribed by rule 16 (1) of the Hyderabad General Sales Tax Rules and as the Sales Tax Officer had not passed any order during the year 1953-54, imposing a tax on the assessee for the preceding year 1952-53, his turnover for that year must be deemed to have escaped assessment within the meaning of rule 32 (1) of the Hyderabad General Sales Tax Rules, and as it was not passed within three years from the end of the year 1952-53, i.e., on or before 31st March, 1956, it was barred by time. Since the controversy in this case has to be resolved with reference to rules 16 and 32, it is convenient to read them here : Rule 16 (2)says :