HARMUKH RAI JAIRAM DAS Vs. STATE

JUDGEMENT

(1.) This case is stated by the Board of Revenue under Section 25 (3) of the Bihar Sales Tax Act 1947.

(2.) The petitioner Harmukh Rai Jairam Das was assessed by the Sales Tax Officer of Darbhanga for the quarter ending 30th of June 1948 to sales-tax amounting to Rs. 7,656/4/-. The assessee had declared in his return a gross taxable turnover of Rs. 89,000 and odd. But the Sales Tax Officer held that the taxable turnover was five lacs and made assessment of tax thereon. It is admitted that on 1st July 1948 the Sales Tax Officer made a surprise visit to the shop of the assessee and discovered that sales to the extent of Rs. 1,349/- were not accounted for. The sales were entered in the Kacha Rokar but not in the Pucca Rokar maintained by the assessee. On 20th July 1948, the assessee filed his return and on 3rd September 1948, line Sales Tax Officer actually made the order of assessment. An appeal was preferred by the assessee to the Commissioner of Tirhut Division who dismissed the appeal. The assessee moved in revision before the Board of Revenue against the order of the Commissioner. By its order dated 11th July 1949 the Board allowed the petition in part and ordered that the gross turnover should be assessed at 3 lacs. It was contended on behalf of the assessee that the assessment was invalid since notice under Section 13 (2) had not been issued and the Sales Tax officer had no jurisdiction to make any assessment. The Board rejected the contention on the ground that though the statutory notice was not issued the petitioner had appeared before the Sales Tax Officer and explained the registers and accounts maintained by him.

(3.) As required by the High Court the Board of Revenue has referred the following questions to be determined: (1) Whether the Member, Board of Revenue, having held (that the statutory notice under Section 13 (2) of the Bihar Sales Tax Act, 1947, had not been issued, could uphold the assessment as valid and lawful? and (2) Whether in absence of the statutory notice under Section 13 (2) of the Bihar Sales Tax Act, 1947, the Sales Tax Officer had any jurisdiction to assess the petitioner under Section 13 (2) (b) or under any other section of the Bihar Sales Tax Act 1947?