TMI Blog1968 (8) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... -------------------- The judgment of the court was delivered by RAMASWAMI, J.-T his appeal is brought, by special leave, from the judgment of the Madhya Pradesh High Court dated March 31, 1964, in Miscellaneous Petition No. 37 of 1963 whereby the High Court quashed the notice dated March 16, 1963, and the proceedings for assessment to sales tax initiated by the respondent for the year 1955-56. The respondent is a partnership firm which has been carrying on the business of a draper at Indore. The firm was registered as a "dealer" under the Madhya Bharat Sales Tax Act, 1950, hereinafter referred to as "the Act". For the year 1955-56 the respondent failed to submit its return whereupon the Sales Tax Officer, Indore, made an order under section 8(1)(b) of the Act and after determining the turnover of the respondent for the said period to the best of his judgment, made an assessment of the respondent to sales tax on the basis thereof. The respondent took the matter in revision to the Commissioner of Sales Tax, Madhya Pradesh. By his order dated October 12, 1958, the Commissioner of Sales Tax held that the assessment order dated August 13, 1956, passed by the Sales Tax Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the provisions of section 10 and to such orders as may be passed in appeal or revision, shall be final for the period." Section 10 of the Act states: "Assessment of tax and levy of licence fees, or registration fees or exemption fees incorrectly assessed.-If for any reason the whole or any part of the turnover of business of a dealer has escaped assessment to the tax, or if the licence fee, registration fee or exemption fee has escaped levy or has been assessed at too low a rate in any year, the assessing authority at any time within a period of three years next succeeding that to which the tax or the licence fee, registration fee or the exemption fee relates, assess the tax payable on the turnover which has escaped assessment or levy the correct amount of licence fee, registration fee or exemption fee, after issuing a notice to the dealer and after making such inquiry as he considers necessary." It was argued on behalf of the appellant that the High Court erred in taking the view that the limitation provided under section 10 of the Act has to be imported in all the assessments made under section 8 of the Act and the High Court failed to appreciate that section 10 prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent failed to submit a return and the Sales Tax Officer made an order of assessment under section 8(1)(b) which was set aside by the Commissioner of Sales Tax in revision and the case was remanded back to the Sales Tax Officer for issuing a fresh notice under section 8(1)(b) and making an assessment after giving an opportunity to the respondent to be heard. The proceedings for assessment have remained pending with the Sales Tax Officer and it is therefore not a case of escaped assessment and the provisions contained in section 10 of the Act have no application to the case. 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 [1963] 14 S.T.C. 976; [1964] 4 S.C.R. 436. The points which arose in that case for determination were: (1) when can a proceeding be said to commence and (2) if a proceeding has commenced within the prescribed period but is pending when such period expires and an order is finalised thereafter, whether such an order is invalid on the ground of its being time-barred. The appellant there was a registered dealer, carrying on business in bidis. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court that in the case of a registered dealer the proceedings before the Commissioner start factually when a return is made or when a notice is issued to him either under section 10(3) or under section 11(2) of the Act. It was held in the first case that the Commissioner had no jurisdiction to issue a notice under section 11-A with respect to the quarters other than that covered by the return made by the appellant. In the second case the Commissioner had jurisdiction to assess the turnover in respect of the entire fourth quarter. At page 450 of the report, the court observed that in a case where a return has been made, but the Commissioner has not accepted it and has issued a notice for enquiry, the assessment proceedings would be pending till the final assessment is made. The court proceeded to observe that even in a case where no return has been made, but the Commissioner initiates proceedings by issuing the notice either under section 10(3) or under section 11(4), the proceedings would be pending till the final assessment is made. This decision therefore clearly lays down the principle that in the case of a registered dealer the proceedings before the Commissioner start factual ..... 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