TMI Blog1987 (11) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... hitale, Senior Advocate (T.V.S.N. Chari and Miss Vrinda Grover, Advocates, with him), for the appellant. Raju Ramachandran, Advocate, for the respondent. -------------------------------------------------- The judgment of the court was delivered by E.S. VENKATARAMIAH, J. -The question of law which arises in these two appeals by special leave being common, they are disposed of by this common judgment. The said question relates to the time within which an assessment can be made under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as "the Act") where the return is not filed by the dealer within the time prescribed in that behalf. The assessee in Civil Appeal No. 4448 of 1985 is M/s. Nav Swadeshi Oil Mills, Jadcherla, Mahaboobnagar District. For assessment year 1968-69 the assessee filed its return relating to the quarter ending 31st March, 1969 on 7th August, 1969 before the Commercial Tax Officer of Mahaboobnagar under the Central Sales Tax Act, 1956 even though the last date for submission of return prescribed by law was 24th May, 1969. The return filed by the assessee showing a taxable turnover of Rs. 18,25,410.72 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revision Case No. 205 of 1985 on the file of the High Court of Andhra Pradesh. That revision petition was dismissed in limine by the High Court. Aggrieved by the decision of the High Court the State of Andhra Pradesh has filed this appeal by special leave. The only question which arises for consideration in these appeals is whether the orders of assessment in the above two cases which had admittedly been passed beyond four years from the last day of the assessment year but within the period of six years from that date had been validly passed By virtue of section 9 of the Central Sales Tax Act, 1956 the procedure prescribed for making an assessment under the Act is applicable to the assessments to be made under the Central Sales Tax Act, 1956. Section 13 of the Act prescribes that every dealer who is liable to get himself registered under section 12 or section 12-A as the case may be under the Act shall submit such return or returns relating to his turnover, in such manner, within such period and to such authority as may be prescribed. The material part of section 14 which is relevant for purposes of these cases reads thus: "14. Assessment of tax.-(1) If the assessing author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 14 of the Act authorises the assessing authority to make an assessment to the best of his judgment in three cases: (i) where a dealer under the Act fails to submit return before the date prescribed in that behalf, (ii) where a dealer produces the accounts, registers and other documents after inspection and (iii) where a dealer submits a return subsequent to the date of inspection. In these three cases the assessing authority is empowered to make an assessment to the best of his judgment at any time within a period of six years from the expiry of the year to which the assessment relates after issuing a notice to the dealer and after such inquiry which he considers necessary to make the assessment. The crucial question which arises for consideration in these cases is whether in a case where the assessee submits a true and complete return after the prescribed date the assessment should be completed within a period of four years prescribed by sub-section (1) of section 14 of the Act or within a period of six years permitted under sub-section (3) of section 14 of the Act. Sub-section (1) of section 14 of the Act relates to an assessment which may be made on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgument that since the returns in the cases before us had been accepted even though they had been filed beyond the prescribed date the assessments made thereon cannot be considered as best judgment assessments and therefore sub-section (3) of section 14 of the Act under which it is permissible to make best judgment assessments would be inapplicable. The period within which assessments can be made under the Act does not depend upon the answer to the question whether the assessment in question is a best judgment assessment or it is an assessment made treating the return as correct and complete but it depends upon the other conditions mentioned in sub-section (1) and in sub-section (3) of section 14 of the Act. We may here point out that even in a case falling under sub-section (1) of section 14 of the Act it is possible for the assessing authority to make a best judgment assessment as can be seen from the latter part of the said sub-section which reads: "but if the return appears to him to be incorrect or incomplete he shall, after giving the dealer a reasonable opportunity of proving the correctness and completeness of the return submitted by him and making such inquiry as he deems ..... X X X X Extracts X X X X X X X X Extracts X X X X
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