TMI Blog1980 (7) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (4) of section 3-B of the Act and vested in the Assistant Commissioner of Commercial Taxes, in such a case was valid?" 2.. The brief facts of the case are as follows: The assessee is an excise contractor at Belgaum for the period commencing from 1st July, 1969, to 30th June, 1970. The Commercial Tax Officer, II Circle, Belgaum, completed the assessment under the Act on 14th December, 1970. The taxable turnover was fixed at Rs. 5,98,000 rejecting the declared turnover at Rs. 4,03,740. Thereafter on 20th December, 1972, the Commissioner of Commercial Taxes, in exercise of his powers under sub-section (4) of section 3-B of the Act issued a general order under which the power to take proceedings for assessment under the Act where the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er had no jurisdiction to issue the notice under section 12-A of the Act which he did only on 3rd April, 1974. He also contested the determination of the turnover on the ground that it was unsustainable. The Deputy Commissioner rejected the contention regarding the jurisdiction of the Commercial Tax Officer, but was of the view that sufficient opportunity had not been given to the petitioner and the assessment had been concluded without proper enquiry. Accordingly, he remanded the matter for fresh enquiry. The petitioner preferred second appeal before the Tribunal. The Tribunal accepted the contention of the petitioner regarding the absence of jurisdiction of the Commercial Tax Officer only to the extent of his passing the final order. Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, the word 'case' in relation to any dealer specified in any order or direction issued thereunder means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year." Once an order is made under clause (a) by the Commissioner directing that the powers of the Commercial Tax Officer exercisable under the Act shall be exercised by the Assistant Commissioner in specified classes of cases, the references to the Commercial Tax Officer or assessing authority in all the provisions of the Act and decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the commencement of proceedings under section 12-A of the Act by the Commercial Tax Officer was valid, as at both points of time he had no jurisdiction. 5.. Sri Devadhar, the learned counsel appearing for the respondent, however, tried to make out that the initiation of the proceedings by the Commercial Tax Officer should be considered as valid in view of the order made by this Court in B.C. Mallaiah Co. v. Commercial Tax Officer, II Circle, BelgaumWrit Petition No. 3165 of 1974 decided on 23rd July, 1974 (Karnataka High Court). The said writ petition was presented by the petitioner immediately after the issue of the notice under section 12-A of the Act by the Commercial Tax Officer. The only question which was raised and decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner under section 3-B(4) of the Act was so patent and was specifically raised before the Deputy Commissioner of Commercial Taxes in the course of the appeal and even though at the relevant point of time it would have been possible for the Assistant Commissioner to commence proceedings afresh under section 12-A of the Act, as at that point of time it was well within the period of limitation, the departmental officers did not take any action to retrace the steps and to have the proceeding initiated by the competent authority, and that too in a case where heavy stakes were involved. The failure of the officers in discharging their duty under the Act is patent in this case. However, we have no other alternative than to hold that the issue of n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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