TMI Blog1972 (6) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-A of the Assam Sales Tax Act, 1947 (hereinafter called "the Act"), stating that from the information in his possession he had reasons to believe that during the return period ending on 30th September, 1965, its turnover in respect of sales of goods chargeable to tax escaped assessment to the tune of Rs. 97,830 being the value of the containers of the wheat products. The petitioner objected to the notice as illegal and without jurisdiction, but all the same submitted a return showing nil turnover under protest. This has led to this application under article 226 of the Constitution and the petitioner obtained the present rule on 5th July, 1968, and the operation of the impugned notice of 11/13th November, 1967, was stayed. 3.. Mr. S.M. Lahiri, the learned counsel for the petitioner, submits as follows: (1) that the condition precedent for the exercise of power under section 19-A of the Act being absent, the notice is without jurisdiction; (2) that there was no basis for holding prima facie that the escaped assessment was to the tune of Rs. 97,830; (3) that the powers under section 19-A being specifically conferred on the Commissioner of Taxes, the same could not be delegate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estrictions and conditions as may be prescribed, delegate by notification in the Official Gazette any of his powers under this Act to any person. This at once takes us to the restrictions and conditions prescribed under the rules with regard to the delegation of Commissioner's powers. By rule 69, the Commissioner shall not delegate his powers under section 31 (power of revision) to any officer below the rank of a Deputy Commissioner. By rule 69-A, the officer to whom powers under section 31 had been delegated shall exercise the powers in respect of such persons or classes of persons and in respect of such cases and areas, as the Commissioner may direct. By rule 70, the powers to call for returns, to make assessments, to, cancel or rectify them, to impose a penalty, to compound offences and to order maintenance of accounts shall not be delegated to any officer below the rank of a Superintendent. By rule 71, the officer to whom powers may be delegated under section 50 shall exercise the powers subject to the provisions of the Act and the Rules thereunder and to such restrictions as may be imposed by the Commissioner in delegating the powers. It is, therefore, clear that the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no difficulty in working section 19-A(2) if the Superintendent authorises an Inspector or a Sub-Inspector of Taxes, who is certainly subordinate to him, to investigate a case under the said sub-section. Mr. Lahiri, however, emphasised that there is no one appointed under section 8 to assist the Superintendent and, therefore, he cannot take the help of the officers appointed under section 8 to assist the Commissioner in exercising power under section 19-A(2). We are, however, unable to read section 19-A(2) that way to give effect to the submission. In our opinion, the words "to assist him" in section 19-A(2) have no reference to section 8 and the Superintendent, who is exercising delegated powers under section 19-A, may authorise any of the persons appointed under section 8 to assist him in the investigation. It is obvious that under section 8 the State Government does not appoint persons to assist the Commissioner in investigating any case, which is what is specifically authorised under section 19-A(2). The submission that section 19-A(2) runs counter to section 8 is, therefore, not well-founded. The third submission of Mr. Lahiri, therefore, cannot be accepted. 8.. With re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above order, the Superintendent of Taxes accepted the returns submitted by the assessee and passed the orders on the basis of the returns in all the four cases on 6th July, 1967. The same Superintendent on 13th November, 1967, issued the impugned notices. The affidavit in each of these cases is submitted by the Assistant Commissioner of Taxes, Research and Procedure Cell and Law Cell, Assam. We may quote the material portion from paragraph 3 of his affidavit: "I submit that the petitioner in the course of his business sells gunny bags in which the wheat products dealt in by him are sold. During the relevant period also he sold gunny bags as containers of wheat products. But the petitioner was not assessed to tax by the assessment order dated 6th July, 1967, in respect of such sales of gunny bags on the ground that the containers were supplied free. In the course of subsequent investigation, however, it came to light that the prices of wheat products sold by the petitioner were fixed by the Roller Mills Wheat Products (Price Control) Order, 1965, as amended. Clause 3(2)(iii) of the said order specified that the prices of wheat products as fixed by the order were for net weight (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Control Order at S.L.-4, the dealer is to be assessed in respect of containers of wheat products. Value of containers @ 2 1/2% Value of wheat of wheat products. products. T.E. 30-9-65 Rs. 97,830 Rs. 39,13,228 " 31-3-66 Rs. 58,754 Rs. 23,50,156 " 30-9-66 Rs. 1,43,685 Rs. 57,47,422 " 31-3-67 Rs. 1,18,321 Rs. 47,32,857" S.L.-4 in the record shows a copy of the Roller Mills Wheat Products (Price Control) Order, 1965. Clause 3 of the Order may be quoted: "Maximum ex-mill prices of wheat products.-(1) No owner or other person in-charge of a roller mill shall sell, or offer for sale, ex-mill, any of the wheat products specified in column (1) of the Table annexed to this order, at a price exceeding the price specified in the corresponding entry in column (2) thereof. (2) For the purposes of sub-clause (1) the prices specified are- (i) exclusive of the Pro rata amount of octroi or terminal tax, if any, paid by the mill in respect of wheat used in the manufacture of the wheat products; (ii) exclusive of sales tax, if any, paid by the seller; (iii) for net weight (inclusive of the cost of the bag), but where such wheat products are sold in cloth bags in quantities of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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