TMI Blog1997 (8) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... sh Agency having place of business at Paltanbazar, Guwahati, in the district of Kamrup. The petitioner also dealt in purchase and sale of various daily lotteries organised and run by the State of Assam under different names. It was also averred that sale of lottery tickets was made exigible to tax under the Assam General Sales Tax Act, 1993 with effect from July 1, 1993. 4.. The Superintendent of Taxes, Guwahati, Unit-C, by letter dated August 2, 1993 communicated the petitioner about the information that was available before him about the sale of tickets of Rs. 2,65,21,922 with effect from July 1, 1993 to July 31, 1993. The Superintendent of Taxes also informed that the sale of lottery tickets attracts the liability under the Assam General Sales Tax Act, 1993 with effect from July 1, 1993 at the rate of 10 per cent as per item No. 94 (of Schedule II) of the Act and he was to apply for registration. By the said letter it was also made known to the petitioner about the statutory requirement of registration by July 31, 1993. The petitioner was accordingly advised to apply for registration and get himself registered immediately. He was also to deposit the taxes due for the month o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner explained his position and stated that the delay was due to unavoidable circumstances and accordingly asked the authority to drop the proceedings of summary assessments and imposition of penalty and to allow 20 days time for payment of tax and submission of the returns. The petitioner submitted two returns on November 6, 1993 and paid tax at 2 per cent instead of 10 per cent. By an order dated November 10, 1993 the assessing officer made summary assessment under section 17(5) read with section 17(1) of the Act. Pursuant to the aforesaid assessment order notice of demand in form No. XI under rule 31 of the Rules for payment of Rs. 1,27,20,891 on account of tax and penalty on or before December 10, 1993 was issued to the petitioner. Thereafter the Superintendent to Taxes (Recovery) and Bakijai Officer, Guwahati, initiated recovery proceeding and issued notice dated January 20, 1994, February 9, 1994 (annexures XII and XIV) respectively. The legality of the assessment proceeding is therefore assailed in this proceeding. 5.. Dr. A.K. Saraf, learned counsel appearing on behalf of the petitioner, impugned the assessment proceeding as illegal and without jurisdiction. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipt of the report of the Inspector of Taxes, the Superintendent of Taxes issued the letter dated August 2, 1993 (annexure I to the writ petition). By order dated August 26, 1993 the application of the petitioner for registration as dealer was accepted and the petitioner was accordingly registered as a dealer under section 11(3) of the Act fixing the date of liability with effect from July 1, 1993. The petitioner was thereafter advised to submit his return for the months of July and August, 1993, vide notice dated September 17, 1993. By the said notice the petitioner was informed about his failure to submit return with full payment for the said two months in spite of the reminder issued to him. The petitioner was accordingly asked to show cause in writing and appear in person before the Superintendent of Taxes on October 5, 1993 at 11 a.m. as to why penalty should not be imposed upon him under the Act. Similar notice was issued to the petitioner on September 28, 1993. From the record it appears that on behalf of the petitioner a cheque dated September 21, 1993 for Rs. 15,000 was sent to the Superintendent of Taxes being taxes for the month of July, 1993. The Superintendent noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 14, 1993, else the assessment will be completed with T.O. noted below without further reference to you. Further you will be imposed penalty under section 23(c) for non-submission of return which may please be noted. On October 14, 1993 Sri Matilal Jain, Manager of the firm, attended the Office of the Superintendent of Taxes with a prayer application for extension of time on the grounds set out therein. The Superintendent of Taxes accordingly extended the date for filing of return with full payment of taxes on or before October 27, 1993. It was further ordered that in case of failure, action would be taken as per notice dated October 8, 1993. The order dated October 14, 1993 was passed in presence of Matilal Jain who put his signature in the order sheet. Another application on behalf of the petitioner was submitted to the Superintendent of Taxes dated October 22, 1993 praying for extension of time. The said application was considered and the Superintendent of Taxes passed the following order: November 1, 1993: Seen the prayer petition of the dealer for extension of time for 20 days. The dealer already availed time twice. However in consideration of the genuineness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay any tax under this Act during such year in respect of his turnover up to the taxable quantum. 11.. Section 8 contains the charge of tax and rates. Under section 8(1)(a) the tax leviable under section 7 for any year shall be charged on the taxable turnover during such year in respect of goods specified in Schedule II at the first point of sale within the State, at the rate or rates specified in that Schedule. In the said Schedule at entry No. 94, lottery tickets is also a specified item and the rate specified is 10 paise in the rupee. 12.. Chapter IV relates to the procedure of registration of dealers and Chapter V contains the provisions for return, assessment and reassessment. The payment of tax and return is envisaged in section 16 and the provisions of assessment is contained in section 17 which are quoted below: 16(1) Tax payable under this Act shall be paid in such manner and at such intervals as may be prescribed: Provided that different intervals may be prescribed for different categories of dealers. (2) Any payment of tax made under sub-section (1) shall be accompanied by a statement in the prescribed form of the turnover of sales or of purchases i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the year or a provisional or advance assessment n the basis of the estimated turnover before the expiry of any year. (2) Where a return has been furnished under section 16, the assessing officer may, in the case of such classes of registered dealer as may be prescribed and subject to such conditions as may be prescribed, make an assessment of the tax payable by the dealer on the basis of the return furnished by him and the documents accompanying such return, without requiring the presence of the dealer or the production by him of any evidence in support of the return. (3) The assessing officer may- (a) in a case where an assessment has been made under sub-section (2), subject to such conditions as may be prescribed, and (b) in a case not falling under sub-section (2) where a return has been furnished, serve on the dealer a notice in the prescribed form requiring him on the date and at the place specified therein, to appear before him and to produce or cause to be produced any evidence on which he may rely in support of his return, or produce or cause to be produced such accounts or documents as the assessing officer may specify in such notice. (4) On the day specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing officer a monthly statement in form V. Such statement shall be accompanied by a receipt from the Government treasury, a crossed cheque or a crossed demand draft for the full amount of tax payable on his taxable turnover during the month to which the statement relates. Explanation. For the purpose of sub-rule (1), the due date for submission of the monthly statement for a particular month shall be the last date of the following month. (2) Every registered dealer or any dealer liable to pay tax under the Act, other than a dealer referred to in sub-rule (1) shall submit to the assessing officer for the quarter ending June 30, September 30, December 31 and March 31, within a month of the expiry of the quarter concerned, a statement of his turnover in form V together with a receipt showing payment of tax due. Explanation. For the purpose of sub-rule (2), the due date for submission of the quarterly statement for a particular quarter shall be the last date of the month following the quarter. (3)(a) If the amount paid by a dealer along with statement under sub-rule (1) is less than the amount of tax payable by him, the assessing officer shall serve notice of demand and the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expiry of two years from the date of assessment, if on inspection of the business premises of the dealer or otherwise, he has reason to believe that the dealer has suppressed a part or whole of the turnover of his business or that the dealer is evading the payment of tax: Provided further that the return shall not be so accepted if the taxable turnover returned for the relevant year does not exceed at least by twenty per cent over the taxable turnover determined for the immediately preceding year. (2) The notice to be served on the dealer as required under sub-section (3) of section 17 shall be in form X. (3) Before making the assessment to the best of judgment, the assessing officer shall provide to the dealer reasonable opportunity of being heard. 14.. Section 16 of the Act enjoins upon the dealer the duty for payment of the tax payable under the Act in such manner and at such intervals as may be prescribed. The payment of tax under the Act is to be accompanied by a statement in the prescribed form of the turnover of sales or of purchase in respect of which tax is paid. The rule enjoined upon the dealer the duty to submit a statement of his return and payment of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le under the Act. The assessing officer acted in conformity with the principles of natural justice. The principle of natural justice is not an unruly horse. The rules of natural justice is not absolute and rigid. As pointed out by the Supreme Court in Suresh Keshy George v. University of Kerala AIR 1969 SC 198 the rules of natural justice are not embodied rules . Tucker, L.J. in Russel v. Duke of Norfolk [1949] 1 All ER 109 observed: There are, in my view, no words which are of universal application to every kind of inquiry and every kind of domestic tribunal. The requirement of natural justice must depend on the circumstances of the case, the nature of the inquiry, the rules under which the tribunal is acting, the subject-matter that is being dealt with, and so forth........ . The sales tax authorities were not bound by the strict technicalities of the Evidence Act nor did the Act or the Rules contemplates the assessing authority to more than what it was done in this case. The dealer under the Act and the Rules is duty-bound to submit his return and make payment of the tax strictly in conformity with the rules. Before making the summary assessment the concerned officer is requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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