TMI Blog1975 (12) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 10 of the Act issued after the assessment year but before the actual assessment, can be claimed by the assessee in the assessment for that year. A decision of this question depends upon the fact as to when the liability to sales tax in respect of a transaction arises. The petitioner has also a contention that the petitioner's accounts cannot be rejected on the ground that the quantity of gum used was insufficient. 2.. The petitioner is a dealer in copra, coconut oil, oil-cakes, bricks, tiles, etc. The petitioner produced his books of account and other connected records of the year 1972-73 before the respondent-Sales Tax Officer, Thodupuzha. But the respondent issued exhibit P-1 notice under section 17(3) of the Act rejecting the acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of clay and firewood is not to be taxed. 4.. Learned counsel for the petitioner contends that simply because the petitioner has not kept any accounts for the use of gum the respondent cannot arbitrarily fix a uniform rate of 500 gms. per quintal of copra crushed. According to the learned counsel, the petitioner's accounts cannot be rejected for this reason for making a best of judgment assessment. Learned counsel relies on St. Teresa's Oil Mills v. State of Kerala[1970] 25 S.T.C. 497; 1969 K.L.J. 856. and contends that the petitioner's accounts cannot be rejected on flimsy grounds. In the above decision this court has said: "The proposition is well-settled that accounts regularly maintained in the course of business have to be taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d', whether the amount has been paid or not." Learned counsel also relies on Commissioner of Income-tax v. Vegetable Products Ltd.[1938] 6 I.T.R. 616., wherein the Supreme Court construing section 271(1)(a)(i) of the Income-tax Act, 1961, has said: "We must first determine what is the meaning of the expression 'the amount of the tax, if any, payable by him' in section 271(1)(a)(i). Does it mean the amount of tax assessed under section 143 or the amount of tax payable under section 156. The word 'assessed' is a term often used in taxation law. It is used in several provisions in the Act. Quantification of the tax payable is always referred to in the Act as a tax 'assessed'. A tax payable is not the same thing as tax assessed. The tax payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obe into the intentions of the legislature and by considering what was the substance of the matter." Shah, J., has formulated the principle thus: "In interpreting a taxing statute, equitable considerations are entirely out of place. Nor can taxing statutes be interpreted on any presumptions or assumptions. The court must look squarely at the words of the statute and interpret them. It must interpret a taxing statute in the light of what is clearly expressed; it cannot imply anything which is not expressed; it cannot import provisions in the statute so as to supply any assumed deficiency." 5. Learned Government Pleader appearing in the case contends that the estimate of gum at 500 gms. per quintal of copra crushed is in no way arbitrar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing authority cannot be considered as arbitrary in view of the decision of the Sales Tax Appellate Tribunal in T. A. 548 of 1968. There is substantial difference in the nature of the tax liability under the Income-tax Act and under the Sales Tax Acts. The scheme of the Sales Tax Acts is that a sale or purchase attracts tax immediately the transaction takes place. The fact that the computation of the turnover is made annually cannot alter the nature of the liability to tax. In this case, the taxable event as far as the purchase of firewood and clay happened when the actual purchase took place. This was long prior to the issue of exhibit P-2 notification. In the absence of any indication in exhibit P-2 notification that it is retrospective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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