TMI Blog1980 (2) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... vision the tax liability of the petitioner for the first quarter of the year 1970-71 was reduced to Rs. 2,36,450 (1,92,000 under the U.P. Sales Tax Act and Rs. 44,450 under the Central Sales Tax Act). It appears that prior to the order passed in revision, the Sales Tax Officer initiated proceedings for final assessment of the sales tax dues from the petitioner for the year 1971 under rule 41(5) of the Rules framed under the U.P. Sales Tax Act. However, due to certain reasons the proceedings for final assessment for the year 1970-71 under rule 41(5) have remained stayed so far. In the month of June, 1976, the Sales Tax Officer initiated proceedings for recovering a sum of Rs. 2,26,500, the amount of sales tax for the first quarter of the year 1970-71, assessed against the petitioner. On 7th June, 1976, the petitioner made an application objecting to the recovery of the said amount. The Sales Tax Officer, vide his order dated 7th June, 1976, rejected the objection and declined to withdraw the recovery proceedings. Aggrieved, the petitioner has come up before this Court. The learned counsel appearing for the petitioner contends that a provisional assessment order made under rule 41( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Act is the charging section. It lays down that every dealer has to, subject to the provisions of the Act, pay for each assessment year, tax on the turnover of his sales, at the rates indicated therein. It means that the tax liability for the assessment year has to be determined or computed and met in the manner laid down in the Act. There is nothing in this section which indicates that the legislature did not contemplate making of the provision for determination of turnover of sales of a dealer for each assessment year in stages, to compute the tax payable on such turnover and to recover the same. According to section 7, every dealer who is liable to pay tax under the Act has to file returns of his turnover at such interval, within such period and in such form, as may be prescribed. The dealer has to, along with the return, deposit, in such manner as may be prescribed, the amount of tax due on the turnover shown in such return. The section further empowers the Sales Tax Officer to, in a case where either the return is not submitted or where the return is submitted but it is found to be incorrect or incomplete, determine the turnover of the dealer to the best of his judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the tax assessed differs from the total amount deposited or paid by cheque, the difference shall be realised or refunded by the Sales Tax Officer, as the case may be. (7)............ (8)............" Rule 41(3) contemplates that every dealer should file either monthly or quarterly return, as the case may be, of his turnover and to pay the tax due on such turnover. The Sales Tax Officer is required to scrutinise the periodical returns as and when they are filed and to see that the tax due in respect of such turnover is paid by the dealer. In a case where the dealer does not submit a return for a particular month or quarter within time or where the Sales Tax Officer comes to the conclusion that the return filed is incorrect or incomplete or that it contains wrong particulars, he is empowered to determine the turnover of the dealer for that period, after making such enquiries as he deems necessary, to the best of his judgment and to, on that basis, provisionally assess the amount to tax payable on that turnover. Under this rule the Sales Tax Officer is required to determine the turnover of the dealer for the last month or quarter of the assessment year as well. In the very n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each month or quarter of the assessment year, as the case may be, under rule 41(3) and then to find out his turnover for the entire year on the basis of such determination and to compute the tax payable by him accordingly. The U.P. Sales Tax Act and the Rules framed thereunder clearly contemplate determination of the turnover of a particular year and computation of tax due on such turnover in stages. They also empower the Sales Tax Officer to recover the tax assessed on the periodical turnovers, if the dealer fails to pay the same on demand. The provision in rule 41(3)(a) and (3)(b) that the tax on the turnover of a particular year shall be provisionally assessed, in the context, merely means that even though such assessment of tax relates to a particular year, it is provisional in the sense that it is not the final determination of the amount payable by the dealer for the entire assessment year in question and that the amount of tax payable by him for the assessment year would be quantified after taking into consideration the turnover for the entire year. It is not provisional in the sense that the turnover for the period has been determined provisionally. In our opinion, the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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