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TMI Blog1996 (5) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Authority was initiated within the period of limitation, i.e., 5 years, as required under section 11(4) of the Punjab General Sales Tax Act?" M/s. Milkhi Ram Sadhu Ram is a commission agent and is also engaged in the business of selling the goods. The assessee filed all quarterly returns in time, but did not pay tax on the purchase of chillies on the basis of a stay order passed by this Court. That stay order was vacated sometime in March, 1977. Even thereafter, the assessee did not pay the tax. Therefore, a notice in form ST-XIV was issued by the Assessing Authority on March 7, 1977 and the assessee was called upon to appear on March 24, 1977. This notice was served upon Shri Sadhu Ram on March 9, 1977. Thereafter, the case was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed and the Deputy Excise and Taxation Commissioner (Appeals) was not right in declaring the proceedings as time-barred. The revision petition filed by the assessee came to be dismissed by the Sales Tax Tribunal, Punjab. Thereafter, the assessee moved an application under section 22(1) of the Act, which has led to the making of reference by the Tribunal. Mr. R.C. Dogra, learned counsel appearing for the assessee, placed reliance on Rameshwar Lal Sarup Chand v. Shri U.S. Naurath, Excise and Taxation Officer [1964] 15 STC 932 (Punj) [FB] and Jagat Ram Om Parkash v. Excise and Taxation Officer [1965] 16 STC 107 (Punj) [FB] and argued that unless a notice for initiation of assessment proceedings is issued under section 11(2) of the Act an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence that the returns furnished in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such returns. (2) If the Assessing Authority is not satisfied without requiring the presence of dealer who furnished the returns or production of evidence that the returns furnished in respect of any period are correct and complete, he shall serve on such dealer a notice in the prescribed manner requiring him, on a date and at place specified therein, either to attend in person or to produce or to cause to be produced any evidence on which such dealer may rely in support of such returns. (3) On the day specified in the notice or as soon as afterwards as may be, the Assessing Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceed to assess to the best of his judgment and would make a note to this effect on the file. That would be the stage when it could be said that the Assessing Authority had proceeded so. No further notice is to be given to the registered dealer by the Assessing Authority before proceeding to assess to the best of his judgment." In Jagat Ram Om Parkash v. Excise and Taxation Officer case [1965] 16 STC 107 (Punj) a Larger Bench of five Judges examined the scope of section 11(4) as it then stood and held: "Whenever a question arises as to whether or not an Assessing Authority has proceeded to assess to the best of his judgment within the meaning of section 11(4) of the East Punjab General Sales Tax Act, 1948, it is for that authority to sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of a notice issued under sub-section (2). In such a case the Assessing Authority has to take within the period some effective step, such as issuance of a notice to the assessee intimating to him that he is proceeding to assess to the best of his judgment the amount of tax due from the dealer. On failure of a dealer to furnish a return in respect of any period by the prescribed date the Assessing Authority after giving the dealer a reasonable opportunity of being heard can proceed to assess to the best of his judgment the amount of tax, if any, due from the dealer under sub section (5). In such a case also an effective step such as issuance of a notice to the dealer concerned showing that the Assessing Authority is proceeding to assess h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, the Assessing Authority had initiated action for best judgment assessment within the period of limitation specified in section 11(4). The notice issued in form ST-XIV clearly indicates that the Assessing Authority had indicated its mind to the assessee that in case of its failure to comply with the notice, Assessing Authority shall proceed to assess under section 11 of the Punjab General Sales Tax Act, 1948 to the best of his judgment without further reference to the assessee. Even thereafter, several notices were given to the assessee giving indication that the Assessing Authority would decide the matter on merits. It is, therefore, clear that the Assessing Authority had initiated steps for best judgment assessment on March 7, 1977 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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