TMI Blog1967 (4) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case that the proceedings for assessment of sales tax taken against the respondent by the Assessing Authority are legally valid, because the assessment in question being for the year 1957-58, the notice with regard thereto in Form S. T. XIV had been issued and served upon the respondent on January 2, 1960, and the proceedings for assessment were initiated in time within the period prescribed under section 11(5) of the Act. It follows therefore that the respondent has made out no case for the grant of a writ under Article 226 of the Constitution for quashing the proceedings for assessment of sales tax for the year 1957-58 taken against him by the appellants. - Civil Appeal No. 188 of 1966 - - - Dated:- 4-4-1967 - SHAH J.C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m on best judgment basis. Before the assessment proceedings could be completed, the respondent filed a writ petition in the Punjab High Court on June 6, 1961, for grant of a writ of mandamus or any other suitable writ directing the appellants not to proceed against the respondent under section 11 of the Punjab Sales Tax Act. In answer to the writ petition the appellants filed a counter-affidavit contesting the averments raised in the writ petition. The writ petition was, however, allowed by Harbans Singh, J., by his judgment dated August 1, 1963, and directions were issued to the appellants not to continue the proceedings for assessment of the respondent to sales tax for the year 1957-58. The learned Judge took the view that the point of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amendment) Act (No. 4 of 1955). The effect of the amendment was that in sub-sections (1) and (3), the word "assess" has been retained while in sub-sections (4), (5) and (6) it has been substituted by the phrase "proceed to assess". The relevant part of section 11 is to the following effect: "11. (1) If the Assessing Authority is satisfied without requiring the presence of a registered dealer or the production by him of any evidence that the returns furnished in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such returns. (2) If the Assessing Authority is not satisfied without requiring the presence of a registered dealer who furnished the returns or production of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -sections (4) and (5), of the Punjab Sales Tax Act, the period of limitation is three years for making the assessment from the last date on which the return is to be filed, as held by the Punjab High Court, or whether the connotation and effect of the language of section 11(4) and (5) is that the order of assessment is valid even if it is made after a period of three years provided the necessary notice is issued within a period of three years from the last date on which the return is to be filed. The question has been the subject-matter of consideration by this Court in a recent case, Ghanshyamdas v. Regional Assistant Commissioner of Sales Tax, Nagpur [1964] 4 S.C.R. 436; 14 S.T.C. 976. The points which arose in that case for determinati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. It was held by this Court that assessment proceedings under the Act must be held to be pending from the time they are initiated until they are terminated by a final order of assessment. It was also held that in the case of a registered dealer there would be four variations in the matter of assessment of his turnover: (1) he submits a return by the date prescribed and pays the tax due in terms of the said return, the Commissioner accepts the correctness of the return and appropriates the amount paid towards the tax due for the period covered by the return; (2) the Commissioner is not satisfied with the correctness of the return, he issues a notice to him under section 11(2), but does not finalise the assessment; (3) the registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision therefore clearly lays down the principle that in the case of a registered dealer the proceedings before the Commissioner start factually when a return is made or a notice is issued and no question of limitation would arise where such proceedings are taken before the expiry of the prescribed period of three years though an assessment order is finalised after the expiry of such period. In other words, the assessment proceedings commence in the case of a registered dealer either when he furnishes a return or when a notice is issued to him under section 11(4) or 10(3), and if such proceedings are taken within the prescribed time though the assessment is finalised subsequently even after the expiry of the prescribed period, no question o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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