HASSAM VALI MOHAMMED Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THESE two special jurisdiction cases arise out of the statement of a case made by the Member, Sales Tax Tribunal, Orissa, under the directions of this Court, referring the following question for the opinion of this Court :-

(2.) THE facts found are as follows : The petitioner started his business as a petty dealer on 1st February, 1957. But at that time his turnover was below the minimum prescribed for the purpose of assessment to sales tax. Nevertheless he applied for voluntary registration under section 9-A of the Orissa Sales Tax Act (hereinafter referred to as the Act) on 23rd February, 1957. There was considerable delay on the part of the Sales Tax Authorities in granting the certificate applied for. It was granted only on 25th July, 1957, and it was actually received by him on the 1st August, 1957. Till then he continued to be mere unregistered dealer. But by the 31st March, 1957, the total transaction of the petitioner rose to Rs. 12,856-15-0 above the prescribed limit. Hence he become liable to pay sales tax under section 4(2) of the Act for the next quarter, April to June, 1957. Similarly for the next quarter ending the 30th September, 1957 also, he became liable to pay sales tax. He admitted his liability to pay sales tax so far as his turnover after the 1st August, 1957, was concerned, but denied his liability to pay sales tax for the period anterior anterior to that date mainly on the ground that though he had applied for voluntary registration as early as on the 23rd February, 1957, the delay in granting registration certificate was entirely due to the Sales Tax Authorities and he was not liable to be assessed to sales tax under section 12(5) of the Act. This argument found favour with the Appellate Assistant Commissioner but on second appeal the learned Member, Sales Tax Tribunal, held that section 12(5) related to an application for registration under section 9 of the Act and not to an application for registration under section 9-A. The correctness of this view is under challenge in these two applications.

(3.) SECTION 12 is the assessing section. Sub-section (4) of that section deals with the assessment of a registered dealer. Sub-section (5) is as follows :-