SHYAMA CHARAN SHUKLA Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) BY this petition under Articles 226 and 227 of the Constitution, the petitioner seeks a writ of certiorari for quashing the order of assessment dated 23rd April 1960 (Annexure B), passed by the Sales Tax Officer, Chhindwara, as also the appellate orders dated 10th December 1960 and 30th November 1961-passed by the Appellate Assistant Commissioner and the Board of Revenue respectively. The petitioner also seeks a writ of mandamus restraining the State of Madhya Pradesh and its officers from continuing the recovery proceedings initiated against the petitioner on the basis of the order of assessment.

(2.) THE petitioner holds mineral concessions for extracting manganese ore in Balaghat and Chhindwara Districts of the present State of Madhya Pradesh and Bhandara and Nagpur Districts of the State of Maharashtra. All these districts formed part of the then State of Madhya Pradesh before the reorganisation of States. Though the sales of the manganese ore effected by the petitioner exceeded the limit prescribed under the C.P. and Berar Sales Tax Act, 1947, which was operative during the relevant period, the petitioner did not get himself registered as a dealer. A number of notices were, therefore, issued by the Sales Tax Officer, Chhindwara, calling upon him to get himself registered and to show cause why he should not be assessed under section 11 (5) of the C. P. and Berar Sales Tax Act, 1947, and section 18 (6) of the M. P. General Sales Tax Act, 1958. THE petitioner thereupon applied for being registered as a dealer and was issued the registration certificate by the Sales Tax Officer, Chhindwara, exercising jurisdiction over Balaghat and Chhindwara districts, on 27th December 1960. In the application for registration the petitioner had stated that his place of business was at Katargjhiri in Balaghat district. After the registration certificate was granted to the petitioner, the Sales Tax Officer issued a notice to the petitioner under sections 17,18 and 19 of the M.P. General Sales Tax Act, 1958, and proceeded to assess the petitioner under section 18 (6) of the said Act for the period 1st October 1953 to 26th December 1958 and determined the turnover at Rs. 10, 42, 153.75 nP. as per the account-books of the petitioner and determined the tax amount at Rs. 31,580.42 nP. and imposed a penalty of Rs. 5,000. THE appeals preferred by the petitioner were dismissed summarily, as the petitioner failed to make the necessary deposits as required under the M. P. General Sales Tax Act.

(3.) IT was then urged that after the reorganisation of States the Sales Tax Officer, Balaghat, had no jurisdiction to assess the sales effected from the mines in the Nagpur and Bhandara districts which no longer formed part of the State of Madhya Pradesh; and as no separate turnover was determined for the various areas, the whole order of assessment must be quashed. Shri Dharmadhikari, learned counsel for the petitioner, referred to section 78 of the States Re-organisation Act, 1956, and urged that under that provision only the arrears can be recovered by the successor-State in whose territory the place of assessment of that tax is included. As the petitioner was not registered as a dealer before the States Re-organisation Act came into force, the place shown in the registration certificate, namely, Katangjhiri in Balaghat district, would be the place of business of the petitioner vis-a-vis the area included in the new State of Madhya Pradesh and it can have no relation to the business which the petitioner carried on at Bhandara and Nagpur districts before the registration certificate was granted and before the States Re-organisation. Shri Dharmadhikari, therefore, urged that the Sales Tax Officer, Balaghat, had no jurisdiction to assess the sales effected from the mines at Nagpur and Bhandara districts.