TMI Blog1974 (12) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... the question it will suffice if we refer to the facts narrated in W. P. No. 4908 of 1972. The petitioner was a firm carrying on business in groundnuts and groundnut oil. Groundnut oil was taxable in 1965-66 at the point of first sale in the State. For that assessment year, the Commercial Tax Officer assessed the petitioner on inter-State sales turnover of Rs. 9,59,400.34. Out of that turnover, sales of groundnut oil that has suffered tax under the Act come to Rs. 1,85,310. The petitioner claimed exemption in respect of that turnover under the provisions of the Central Sales Tax Act. Its claim was negatived by the Commercial Tax Officer and, on appeal, the Assistant Commissioner of Commercial Taxes, following the decision of the Supreme Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as barred by limitation since it was served upon the petitioner on 18th April, 1972. In other words, the service of the order on the petitioner was beyond the period of four years fixed in section 20(3) of the Act for exercising the revisional jurisdiction. The Tribunal repelled that contention and dismissed the appeal. It is on the ground that the petitioner did not question the revisional jurisdiction of the Deputy Commissioner before the Tribunal that the writ petition has been filed questioning the power of the Deputy Commissioner to exercise revisional jurisdiction under section 20(3) of the Act. It is not in dispute that section 6(1A) of the Central Sales Tax Act, which has been inserted by the Amendment Act 28 of 1969, has retrospe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on suo motu under section 20(2) of the Act. We have, therefore, to see whether section 20(2) applies or section 14(4) applies to this case. Section 14(4) of the Act reads: "In any of the following events, namely, where the whole or any part of the turnover of business of a dealer has escaped assessment to tax, or has been under-assessed or assessed at a rate lower than the correct rate, or where the licence fee or registration fee has escaped levy or has been levied at a rate lower than the correct rate, the assessing authority may, after issuing a notice to the dealer, and after making such enquiry as he may consider necessary, by order, setting out the grounds therefor: (a) determine to the best of his judgment the turnover that has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be allowed on the disputed sales. A Full Bench of the Madras High Court in State of Madras v. Louis Dreyfus and Company Ltd.[1955] 6 S.T.C. 318. explained what constitutes "escaped turnover". To quote the learned Judges: "'Turnover' escapes when it is not noticed by the officer either because it is not before him by reason of an inadvertence, omission or deliberate concealment on the part of the assessee, or because of want of care on the part of the officer the turnover though in the books has not been taken notice of. This would be the natural and normal meaning of the expression 'turnover which has escaped'." Therefore, it is not a case where it could be said that there has been any escapement of assessment on account of any in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Deputy Commissioner was not justified in exercising jurisdiction under section 20(2) of the Act. The next question which relates only to W.P. No. 4908 of 1972 is whether that power has been exercised within the period prescribed in subsection (3) of section 20. Sub-section (3) reads: "In relation to an order of assessment passed under this Act, the powers conferred by sub-sections (1) and (2) shall be exercisable only within such period not exceeding four years from the date on which the order was served on the dealer, as may be prescribed." The period of four years prescribed should be reckoned for the purpose of limitation from the date on which the order in revision was served upon the dealer. That order was served upon the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts to communication of an order to a person concerned. It was, therefore, observed by the learned Judges: "Before something amounts to an order of the State Government two things are necessary. The order has to be expressed in the name of the Governor as required by clause (1) of article 166 of the Constitution and then it has to be communicated. The Constitution requires that the action must be taken by the authority concerned in the name of the Governor. It is not till this formality is observed that the action can be regarded as that of the State." The learned Judges in that case were only concerned with the compliance of the requirements of clause (1) of article 166 of the Constitution, and they were not concerned with any period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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