TMI Blog1964 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... on application made subsequent to the date of accrual of his liability to pay tax remained valid for the entire financial year during which the application was made and the registration certificate was granted; and whether proceedings for assessment for the quarter ending on 30th June, 1951, which commenced on 23rd November, 1953, should have been instituted under section 12(2) or section 12(4) and not under section 12(5) of the Orissa Sales Tax Act, 1947? Whether completion of assessment in respect of quarters ending 31st December, 1950, and 31st March, 1951, under section 12(5) was illegal? Held that:- Appeal dismissed. - Civil Appeal No. 832, 833, 834 of 1963 - - - Dated:- 4-11-1964 - SUBBA RAO K., SIKRI S.M. AND SHAH J.C. JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then liable for registration, and asked him to furnish a fresh application for registration. The assessee then submitted an application, dated October 18, 1951, and on the basis of this application the assessee was granted a registration certificate on November 2, 1951. On November 25, 1953, proceedings under section 12(5) of the Act were started in respect of three quarters, namely, quarters ending December 31, 1950, March 31, 1951, and June 30, 1951. The Assistant Sales Tax Officer, by orders, dated December 31, 1953, assessed the assessee for the quarters ending December 31, 1950, and March 31, 1951, and by order, dated January 28, 1954, assessed the assessee for the quarter ending June 30, 1951. These orders were passed under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether in the facts and circumstances of the case the certificate of registration granted to the opponent on application made subsequent to the date of accrual of his liability to pay tax remained valid for the entire financial year during which the application was made and the registration certificate was granted; and whether proceedings for assessment for the quarter ending on 30th June, 1951, which commenced on 23rd November, 1953, should have been instituted under section 12(2) or section 12(4) and not under section 12(5) of the Orissa Sales Tax Act, 1947. 4.. Whether in the facts and circumstances of the case completion of assessment in respect of quarters ending 31st December, 1950, and 31st March, 1951, under section 12(5) was il ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t arise, since it contemplates cases of failure to apply for registration without sufficient causes. So our answer to question No. 5 Question No. 4 in our judgment. is that in the facts and circumstances of the case, completion of assessment in respect of quarters ending 31st December, 1950, and 31st March, 1951, under section 12(5) was illegal." The learned counsel for the appellant, Mr. Bindra, submits that the application of the assessee, dated August 22, 1949, for registration, was not a valid application, and that the assessments under section 12(5) of the Act were valid. It is not necessary to decide the question whether the said application, dated August 22, 1949, was a valid application or not, because even if we assume that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the conclusion that the assessee had wilfully failed to apply for registration. We are unable to accede to this contention. The fact that the assessee applied for registration cannot be ignored in determining the question. He, in fact, stated that he was liable to tax under the Act as his gross turn- over exceeded Rs. 5,000. He was not thereby trying to avoid tax, but on the contrary he was telling the Sales Tax Officer that he was liable to be taxed. It is the negligence of the Sales Tax Officer in not inform- ing him that his application has been rejected that led him not to file another application. The expression "nevertheless wilfully failed to apply for registration" connotes a deliberate failure to apply for registration in orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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