HIRA LAL AGARWALA Vs. STATE OF BIHAR

JUDGEMENT

(1.) In M. J. C. 400 of 1951, the assessment of sales tax is for the period from the 26th of November, 1948, to the 31st of December, 1948. In M. J. C. 403 of 1951, the period of assessment is from 1st of January, 1949, to 31st of March, 1949; and in M. J. C. 399 of 1951, the assessment is for the period from the 1st of April, 1949, to the 30th of June, 1949. For all these periods the Sales Tax Officer made an assessment order with regard to the dealer Hiralal Agarwala on the 17th of January, 1950. Notice of the assessment order was served upon the assessee on the 7th of February, 1950. According to the report of the peon, the shop of the assessee was closed and, therefore, the peon effected service by hanging a copy of the notice on the shop premises On the same date, the peon tendered a copy of the notice to Mr. Gauripati Mazumdar who was acting on behalf of Hiralal Agarwala. The pleader, Mr. Gauripati Mazumdar, refused to take the notice and, there fore, the peon affixed a copy of the notice in the office building of the pleader. The notices in question were issued by the Sales Tax Officer under Section 14 (4) of the Bihar Sales Tax Act.

(2.) The case of the assessee is that the notices were properly served and he actually came to know the assessment order on the 21st of March, 1950. The assessee preferred appeals before the Commissioner on the 7th of April, 1950, against the order of assessment for all the three periods. The Commissioner, however, summarily dismissed the appeals on the ground that they were barred by limitation under Section 24 (2) of the Bihar Sales Tax Act. The Commissioner took the view that the appeals should have been presented within forty-five days of receipt of the notice issued under Sub-section (4) of Section 14. But as the assesses did not prefer appeals within the stipulated period, the Commissioner held that Section 24 (2) was a bar and the appeals should be summarily dismissed. The assessee took the matter in revision before the Board of Revenue, but his application was dismissed on the 7th of May, 1951. In this state of facts, the High Court has directed the Board of Revenue under Section 25 (2) (b) to make a statement of the case on the following questions of law.

(3.) For these reasons, we answer the questions of law referred by the Board of Revenue in favour of the assessee and against the State of Bihar. The assessee is entitled to the costs of this reference. There will be a consolidated hearing fee of Rs. 250.00 in all the three cases.