PARWATIJI MILLS Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this case the assessee, namely, Shri Parwatiji Mills, was assessed under Section 13(5) of the Bihar Sales Tax Act for the period from the 1st of July, 1947, to the 3Oth of September, 1948. The taxable turnover was determined to be Rs. 3,28,647 and the tax payable was Rs. 5,291-6-0. Penalty equal to the amount of the tax was also imposed by the Sales Tax Officer under Section 13 (5) because the assessee had not applied for registration in time.

(2.) It appears that a surprise visit was paid to the mill of the assessee on the 24th of September, 1948, by the Inspector of Sales Tax Department. It was discovered that the assessee had been carrying on business for a long time and the gross turnover had exceeded the register-able limit fixed by the statute. Notice was served upon the assessee to produce the accounts. The Sales Tax Officer examined the account books and held that they were not reliable. He, accordingly, assessed the tax to the best of his judgment. An appeal was taken by the assessee to the Deputy Commissioner of Sales Tax who allowed the appeal so far as the penalty was concerned, but confirmed the order of assessment. A revision application was filed by the assessee before the Commissioner of Sales Tax and also before the Board of Revenue, but these applications were dismissed.

(3.) As directed by the High Court, the Board of Revenue has submitted a statement of the case under Section 25 (3) of the Bihar Sales Tax Act, 1947, upon the following question of law :- Whether in view of the fact that the petitioner had applied for registration on the 2nd January, 1948, the assessment under ection 13 (5) of the Bihar Sales Tax Act, 1947, is valid for the entire period commencing on the 1st July, 1947, and ending em the 30th September, 1948.