TMI Blog1979 (1) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to payment of sales tax under the Act. On 29th October, 1977, the Commercial Taxes Officer, B-Circle, Bhawani Mandi, District Jhalawar (hereinafter referred to as "the assessing authority"), issued a notice to the petitioners under section 10(2) of the Act directing them to produce the account books and other records for the period from 1963-64 to 1973-74. The petitioners submitted a reply to this notice stating that the notice was bad in respect of the period beyond 8 years and as the notice in question was a composite one comprising of the period beyond 8 years and that falling within 8 years, the same was illegal and no proceedings under section 10 could be initiated against the petitioners on the basis of such a notice. As the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners is based on section 12(2) of the Act, which provides that no notice under section 12(1) shall be issued in respect of any business for any year, after the expiry of 8 years from the end of the relevant assessment year. The notice under section 10(2) in the present case was issued on 29th October, 1977, which was certainly beyond the period of 8 years from the end of the assessment years 1964-65 to 1968-69. The learned Government Advocate submitted that the notice was issued by the assessing authority under section 10(2) of the Act and not under section 12(1) of the Act. But on a perusal of section 10(2) of the Act, we find that a notice could be issued thereunder only after a return has been filed under section 7(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by an assessee but the same resulted in no assessment at all and to cases where due to any reason no notice was issued to the assessee and on that account there was no assessment of his income. It was also held in the aforesaid case that where the assessee did not file a return of his turnover for any year and as a consequence thereof there was no assessment, then it was a case where the entire turnover of a dealer has escaped assessment, although it may be on account of mere omission or of deliberate and wilful concealment on the part of the assessee that he did not submit any return but, in any case, it is his default that led to the escapement of the turnover for the year and it could be held that the whole of the turnover of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner only in respect of the years which fall within the limitation prescribed in sub-section (2) of section 12 of the Act. In this view of the matter, the composite notice is bad in law and, therefore, the same is quashed. However, it is made clear that it will be open to the assessing authority if he so considers proper, and there are circumstances appearing, which may satisfy the requirements of subsection (1) of section 12, to give a fresh notice to the petitioners for such period which may fall within the limitation prescribed in sub-section (2) of section 12 of the Act. The writ petition is accordingly allowed. The notice dated 29th October, 1977, is quashed subject to the observations made above. The parties are left to bear the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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