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TMI Blog1961 (3) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed and consequently the tax thereon remained unpaid by the transferor? (2) Whether a transferee within the meaning of section 19(1) of the Act cannot be made liable to pay sales tax from the date of the transfer without determination of his liability under the provisions of section 4 of the Act as contemplated under section 19(2) of the Act?" 2.. The facts giving rise to this reference are these: The dealerassessee was taxed under section 12(4) of the Orissa Sales Tax Act for the quarters ending on 30th June, 1953, to 31st December, 1954. One Banambar Sahu Chaudhury was a registered dealer under the Orissa Sales Tax Act. He was running a hotel under the name "City Restaurant". He transferred the business to the dealer-assessee (herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined unpaid by the trasferor till the date of transfer, the Tribunal annulled the assessment for the quarter ending on 30th June, 1953. In the absence of determination of the liability of the transferee-dealer-assessee under the provisions of section 4 of the Orissa Sales Tax Act, the Tribunal set aside the assessments, and directed fresh assessment according to law. The Tribunal appears to have taken the correct view of the law, but he seems to have gone wide off the mark. In that connection, I would like to state the scheme of the Act. Section 4 is the charging section. Thereafter section 5 deals with the rate of tax and sub-section (1) lays down that the tax payable by a dealer under this Act shall be levied at the rate of one quarter o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able under the Act shall be paid in the manner prescribed thereunder. Sub-section (2) lays down that before any registered dealer furnishes the returns required by sub-section (1) of section 11, he shall in the prescribed manner, pay into a Government treasury the full amount of tax due from him under the Act according to such returns and shall furnish along with the returns, a receipt from such treasury showing the payment of such amount. We are not very much concerned with sub-section (3). Sub-section (4) lays down that the amount of tax: (a) due where the returns are furnished without receipt showing full payment thereof, or (b) assessed under subsections (1), (2), (3) and (4) of section 12 less the sum, if any, already paid by the deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Tribunal appears to have overlooked that portion of the judgment where the learned Judge was dealing with the difference between the Bihar Sales Tax Act and the Indian Income-tax Act. Sahai, J., in unmistakable terms had observed that there are two important points of difference between the Bihar Sales Tax Act and the Indian Income-tax Act, 1922. (1) Whereas income-tax for the assessment year is assessed on the income of the previous year, sales tax becomes liable to be paid immediately after each sale is effected though, for facility of computation and payment of tax, provision has been made for the filing of returns at the expiry of each quarter. (2) Whereas rates of income-tax vary in accordance with the amount of income and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bent upon the registered dealer to state that amount in the return when submitted. Not only that, it is also enjoined under the Act that the dealer is to deposit that amount into the Government treasury. When the assessment is made, the sum which has been deposited into the Government treasury has to be deducted from the total amount of tax. That is the reason why the expression "the sum" has been used in clause (b) of sub-section (4) of section 13 of the Act. 4.. Thus, while answering question No. 1 in the affirmative, I would like to add that it must be subject to certain conditions. If the transferor-registered-dealer had filed a return and no assessment had been made, even then the transferee-dealer is liable to pay the admitted tax as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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