TMI Blog1964 (10) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... r Advocate (S.P. Varma, with him), for the appellant. -------------------------------------------------- The judgment of the Court was delivered by SHAH, J.- The appellant-a public limited company-having its registered office at Calcutta, was, with effect from October 5, 1946, appointed sole agent for sale of goods manufactured by the Swadeshi Cotton Mills Company Ltd. On March 20, 1952, the Sales Tax Officer, Kanpur, issued a notice under section 21 of the U.P. Sales Tax Act, 1948, calling upon the appellant-company to file a return of its turnover for the assessment year 1948-49 on the ground that the turnover had escaped assessment. On March 31, 1952, the Sales Tax Officer made a "best judgment" assessment and determined the taxable turnover of the appellant-company at Rs. 50 lakhs for the year 1948-49 and determined the appropriate tax liability. In appeal to the Judge (Appeals) Sales Tax the order passed by the Sales Tax Officer was set aside, that authority holding that the appellant-company was not a dealer within the meaning of section 2(c) of the Act. But the order of the appellate authority was set aside by the Judge (Revisions) Sales Tax by order date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of limitation prescribed by section 21 of the Act did not apply. Against the order passed by the High Court reversing the order passed by Chaturvedi, J., this appeal has been preferred with special leave. The material provisions of the U.P. Sales Tax Act are briefly these: Section 9 conferred a power upon the designated authority to entertain an appeal against the order passed by the Sales Tax Authority, and by sub-section (3) of section 9 it was provided: "The appellate authority may, after giving the appellant a reason- able opportunity of being heard- (a) confirm, reduce, enhance or annul the assessment; or (b) set aside the assessment and direct the assessing authority to pass a fresh order after such further inquiry as may be directed; or (c) * * *" By sub-section (3) of section 10 as it stood at the relevant time, it was provided: "The Revising Authority may in his discretion at any time suo motu or on the application of the Commissioner of Sales Tax or the person aggrieved, call for and examine the record of any order made by any Appellate or Assessing Authority under this Act, for the purpose of satisfying himself as to the legality or propriety of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting registration of the firm and assessing it on that footing should not be set aside, and by order dated February 13, 1928, ordered cancellation of registration and directed the Income-tax Officer to take necessary action thereupon. On May 4, 1929, the Income-tax Officer assessed to super-tax the assessee on the footing that its registration was can- celled. The authority of the Income-tax Officer to assess was challenged. It was held by the Judicial Committee that as the Income- tax Officer had made the order imposing super-tax on the assessee more than one year after the earlier demand in respect of income-tax, the order was without jurisdiction. The Judicial Committee pointed out that once a final assessment has been made, it cannot be re-opened by the Income-tax Officer of his own motion or at the direction of the Commissioner exercising his powers under section 33 of the Indian Income-tax Act, 1922, except in the circumstances and within the time prescribed by sections 34 and 35 of the Act. They observed that sections 34 and 35 were exhaustive, and prescribed the only circum- stances in which, and the only time in which, such fresh assessments could be made and fresh notices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice of the notice even if the period of four years is thereby exceeded; and (ii) that nothing contained in section 21 which limits the time within which any assessment or reassessment is to be made applies to assessment or reassessment made in consequence of, or to give effect to, any finding or direction contained in an order under section 9, 10 or 11. Therefore where the Sales Tax Officer proceeds in pursuance of a direction given by the appellate or revising authority or under an order made by the High Court in a reference under section 11, the period of limitation prescribed by sub-section (2) of section 21 does not apply. This section was incorporated in the Act by section 15 of the amending Act, which enacted: "For section 21 of the Principal Act the following shall be and be always deemed to have been substituted:" The amendment section was therefore to be deemed to be in operation at all material time since the enactment of the U.P. Sales Tax Act, 15 of 1948. The Legislature has given a clear retrospective operation to the amended section as from the date on which the Principal Act came into operation, and correctness of the order of the Sales Tax Officer holding tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed to have been on the statute book on the date on which the revising authority passed his order, and under that amended provision the power of the assessing authority to assess or reassess pursuant to an order of the revising authority was not lost when the period prescribed by sub-section (2) of section 21 for assessment or reassessment expired. Under section 21, before it was amended, there could be no order of assessment or reassessment either by the Sales Tax Officer suo motu, or pursuant to the direction of the appellate or revising authority after the expiry of the period of three years prescribed by the statute, but under section 21 as amended, the power may be exercised by the Sales Tax Officer suo motu within four years from assessment or reassessment. That power could be exercised under the first proviso within a further period of one year if a notice under sub-section (2) was served within four years of the end of the year of assessment and without limit of time when it was made in consequence of, or to give effect to, any finding or direction contained in an order of the appellate or revisional authority or under an order of the High Court under section 11. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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