SIRAJUDDIN Vs. STATE OF M P

JUDGEMENT

(1.) THE plaintiff has preferred this appeal against the dismissal of his suit by the trial court on the ground that the suit is barred under Section 37 of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as the Act ).

(2.) THE plaintiff was a forest contractor and he was engaged in the business of selling timber and fuel wood by converting the standing trees. For this purpose, he used to take forest coups from the forest department in public auctions. By order dated 21th August, 1966, the Assistant Sales Tax Officer, Rajnandgaon, imposed tax of Rs. 8,275 for the period 6th December, 1962, to 27th July, 1965, and by order dated 19th December, 1966, he imposed tax of Rs. 4,950 for the period 28th May, 1965, to 31st March, 1966. He also imposed penalty of Rs. 2,500 under Section 18 of the Act for non-registration by his order dated 17th January, 1967. The plaintiff preferred a revision before the Deputy Commissioner, Sales Tax, Raipur, which was dismissed on 28th June, 1969. In pursuance of the assessment orders, the sales tax authorities issued a certificate for recovery of the amount of Rs. 15,725.

(3.) THE plaintiff filed the present suit for a permanent injunction restraining the State from realising the amount of sales tax and penalty imposed on him. According to him, he was not a dealer and had no business from 6th December, 1962, till 31st December, 1964. Sales of forest produces were exempted from sales tax for the period 1st April, 1959, to 2nd November, 1962, under" Section 12 of the Act and, therefore, the turnover of the 12 months preceding 6th December, 1962, cannot be taken into consideration for registration as a dealer. Moreover, the turnover has to be more than Rs. 25,000. The plaintiff was also not a manufacturer within the definition given under the Act during the period for which he was assessed to sales tax. As such, the assessment of sales tax on him is illegal and without jurisdiction. He further contended that the Sales Tax Officer assumed jurisdiction to commence and conclude proceedings of best judgment assessment against the plaintiff in the absence and unawareness of the plaintiff.