1963 (3) TMI 26 - SC - VAT and Sales Tax

Reassessment under section 19(1) of the Madhya Pradesh General Sales Tax Act 1958 challenged - Held that - Appeal dismissed.

Summary

Issues:
1. Validity of reassessment under the Madhya Pradesh General Sales Tax Act, 1958.
2. Delegation of powers and duties under section 30 of the Act.
3. Reassessment in respect of sales previously assessed under the Madhya Bharat Sales Tax Act, 1950.
4. Additional points raised by the appellant.

Detailed Analysis:
1. The judgment concerns the validity of a reassessment under the Madhya Pradesh General Sales Tax Act, 1958, for the year 1957-58. The appellant was assessed additional tax and penalty by an Assistant Commissioner of Sales Tax. The appellant challenged the order in the High Court and subsequently appealed to the Supreme Court. The key issue was whether the Assistant Commissioner had the authority to reassess sales that had allegedly escaped assessment.

2. Section 19(1) of the Act required the Commissioner to be satisfied that sales had escaped assessment before exercising the power to reassess. The appellant argued that the duties of satisfaction could not be delegated to the Assistant Commissioner under section 30. However, the Supreme Court held that the duty of being satisfied was inseparably connected with the power to reassess and passed to the delegate along with it. The Court cited precedents to support the view that the delegation of powers includes the duties attached to them, and thus, the Assistant Commissioner validly exercised the power based on personal satisfaction.

3. Another challenge raised was regarding the reassessment of sales previously assessed under the Madhya Bharat Sales Tax Act, 1950. The appellant contended that since the earlier assessment was in the name of a non-existent person, it was a nullity, and therefore, could not prevent the reassessment of the appellant. The Court agreed that the assessment on a non-existent person was invalid, allowing for the reassessment of the appellant's sales.

4. The appellant sought to raise additional points not included in the original petition. These points related to the chargeability of sales under the 1958 Act and the imposition of a penalty under the repealed 1950 Act. However, the Court declined to consider these points as they were not raised earlier. The appeal was ultimately dismissed, upholding the validity of the reassessment and the imposition of additional tax and penalty on the appellant.

In conclusion, the Supreme Court affirmed the validity of the reassessment under the Madhya Pradesh General Sales Tax Act, 1958, and rejected the challenges raised by the appellant, ultimately dismissing the appeal with costs.