EXCISE OF TAXATION COMMISSIONER Vs. DHANI RAM

JUDGEMENT

(1.) PRESENT reference, under Section 33 of the Himachal Pradesh General Sales Tax Act, 1968, as amended from time to time, has been made by Financial Commissioner (Appeals), to the Government of Himachal Pradesh. The issues referred for our judgment are as follows:

(2.) REFERENCE has been made on the request of M/s Dhani Ram and Sons, hereinafter referred to as 'Applicant', who is represented before us by Sh. Man Mohan Khanna, Senior Advocate, assisted by Ms. Pushpa Attri, Advocate. The background in which the reference has been made and the aforesaid issues have been framed for judgment by this Court, may be noticed. Applicant, Dhani Ram and Sons is a registered dealer for Sales Tax purposes and it has its place of business in Bilaspur District of Himachal Pradesh. Applicant submitted returns for the years 1990 -91 and 1991 -92 which were finalized and accepted by the concerned authorities.

(3.) WE have heard learned Counsel for the parties and perused the record. As regards issue (i) referred for our judgment, the Financial Commissioner (Appeals) has stated that there was no knew information available to the Assessing Authority for re -assessing the tax liability and that the only basis for re -assessing the liability on the applicant was that there was one notification of 10th March, 1988 which has not been taken into account while making the original assessment. A notification issued under the provisions of the Act or the Rules framed thereunder, becomes part of the Act or the Rules, as the case may be and, therefore, ignorance of the Assessing Authority, about such notification at the time of original assessment, cannot be equated with non -availability of entire information. If such a notification comes to the notice of the Assessing Authority subsequently, it cannot be equated with a case of new information coming to the notice of Assessing Authority. The reason is that ignorance of law is no excuse even for a layman and in the case of a person applying such law, the presumption should apply with manifold vigour. In view of the above stated position, we are of the considered view that the action of Assessing Authority in re -opening the original assessment was not in consonance with the provisions of Section 15(1) of the Himachal Pradesh General Sales Tax Act and hence not lawful. Issue is determined accordingly.