TMI Blog2017 (12) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... per Section 2(k) of the Central Sales Tax Act, 1956, "year" in relation to a dealer, means the year applicable in relation to him under the general sales tax law of the appropriate State, and where there is no such year applicable, the financial year. Interpretation of statute - Held that: - It is well settled that Tax Laws have to be given strict construction and interpretation. Reference can be made to few decisions. - There is no equity in tax, and the principle of strict or literal construction applies in interpreting tax statutes. Hence, on the plain language of the statute, if the assessee is entitled to two benefits, he has to be granted both these benefits - If there are two reasonable interpretation of taxing statutes, the one in favour of the assessee has to be accepted. If initial assessment is permitted to be done, at any time, say in the case on hand, after a decade, after the submission of the returns, for the years 2004-2005 and 2005-2006 and if for any reasons, the whole or part of the turn over is assessed at a rate lower than the rate at which it is assessable then, it would give leverage to the Taxing Authority, to do assessment, as in the case on hand, af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004-2005 and 2005-06 is sustainable in law? 4. Brief facts leading to the revisions are that the Petitioner is a manufacturing unit of Pressure Die Castings and Aluminium Alloys with Tax Identification Number 34480004564 and Central Sales Tax Act Number 34480004564 dated 16.04.2008 under the Puducherry Value Added Tax Act, 2007 and Central Sales Tax Act, 1956 registered on the file of the Commercial Tax Officer (lAC), Commercial Taxes Department, Puducherry. The said Unit was registered as a Small Scale Industry, registered with the Directorate of Industries, Government of Puducherry vide registration No. 59 03 3633 PMT SSI dated 20.08.1987. 5. The petitioner has paid taxes, as per the returns filed and also filed Audited Balance Sheet, Manufacturing, Trading Profit and Loss Account, Purchase Account, Sales Account for the period from April 2004-2055 and 2005-06. C Forms for CST sales were also filed before the Authority, while submitting the returns for the years 2004-2005 and 2005-06. 6. The assessing authority has not passed any order for the above said assessment years 2004-2005 and 2005-06. The reasons for the same were not known. The Petitioner has been followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirming the orders of the Addl. Deputy Commercial Tax Officer (lAC), Puducherry and the Appellate Assistant Commissioner, Puducherry and the respondent herein is totally incorrect, without application of mind and is against the provisions of law. B. The Appellate Tribunal ought to have seen that all the Original C Forms were filed by the petitioner at the time of completion of Assessment. But the then Assessing Officer has failed to pass the orders. After lapse of 11 years, the Assessing Officer has imposed the additional tax of 10% for non-production of C Form for CST sales for the year 2004-2005 and 2005-2006. C. The C forms were filed before the Appellate Authority. The then assessing officer has not passed the Assessing Order for respective period 2004-2005 and 2005-2006. It is statutory duty of the Assessing Officer to pass the order after verifying the accounts and after collecting C Form etc. The petitioner was ready and willing to submit the duplicate C Form for the CST sales in respect of the Assessment year 2005-06 and approached the present Assessing Officer after receipt of the notice dated 12.11.2015. But, the authorities did not accept the C form. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing authority, before passing the order. 14. The appellate authority erred in upholding the assessment order as it is only fair and proper to consider the duplicate forms submitted before the appellate authority. The petitioner has relied on the following decisions: (1) State of Tamil Nadu v. Arulmurugan and company [1982 51 STC 381 (Mad)], (2) State of AP v. Hyderabad Asbestos Cement Production Ltd. {1994 AIR 2364 (SC), (3) R S Cotton Mills v. The State of Punjab [CWP No. 12426of 2008 9HC - P H)], (4) Prestolite Of India Limited v. The State Of Haryana And Ors. [198870 STC 198 (P H)], and (5) Larsen Toubro Ltd., v. Orissa Sales Tax Tribunal others [(2008)15 VST 484 (Orissa)]. 15. The Additional Deputy Commercial Tax Officer-IAC, Pondicherry, has filed a counter affidavit on behalf of the respondent and denied the averments. According to him, the Petitioner filed returns for the assessment years 2004-2005 and 2005-2006, which were admitted provisionally pending submission of the declaration forms as the case be, under Rule 12(7) of the CST (Registration and Turnover) Rules, 1957, which mandates filing of declaration Forms C/F/H/l /E1/E2 to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forms vide his letter dated 21.11.2015. As requested the assessing officer has extended time upto 07.12.2015 to produce the declaration Forms. 19. Even though, sufficient time was given for furnishing the declaration forms, but till the date of finalizing the assessment order, the Petitioner has not furnished the required forms for claiming concession/ exemption. Therefore, the Assessing Officer had no other alternative and finally determined the total and taxable turnover for the assessment year 2004-2005 under CST Act, 1956 and PGST Act, 1967 and raised CST demand of ₹ 4,80,477/-. Similarly, for 2005-06 under CST Act, 1956 and PGST Act, 1967 and raised CST demand of ₹ 5,05,228/ -. 20. The petitioner filed appeals before the Appellate Asst. Commissioner against the order of the Assessing Officer for the assessment years 2004-2005 and 2005-2006. After hearing both sides and taking into consideration of all the relevant facts put forth by the Assessing Officer as well as the Petitioner, the appellate authority confirmed the assessment orders passed by the Assessing Officer and dismissed the appeal filed by the petitioner. Aggrieved by the same T.A. Nos.14 and 15 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lates. The said Rule only says that an order has to be passed after the close of the year and it does not specify any time frame. The CST assessment order passed for the years 2004-2005 and 2005-2006 respectively were passed, after the close of the year and does not contravene the said Rule. Rule 5(10) of the Central Sales Tax (Pondicherry) Rules 1967 speaks about reassessment to assess the escaped turnover. The said rule says that such reassessment shall be done within five years from the expiry of the year to which the assessment relates. The assessment order dated 06-01-2016 is not a reassessment order, but it is the first assessment order and therefore the time limit specified in Rule 5 (10) of the CST (Pondicherry) Rules, 1967 does not applies to the case on hand. 25. The respondent has further submitted that the statutory forms pertaining to the years 2004-2005 and 2005-2006, ought to have been furnished by the Petitioner on or before 30th June of every year, as per Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules 1957. Further, the petitioner has filed returns without furnishing of C forms, but availed concessional rate of tax and therefore it is mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granted nine years time and therefore the contentions made by the petitioner that the Appellate Tribunal erred in upholding the assessment order, which had not granted time is contrary to facts. 28. Furnishing original C forms is mandatory and not a mere procedural aspect to support the genuineness of the transactions and does not alter the character of the transaction of sale to registered dealers as alleged by the petitioner. The orders of the assessing authority are in consonance with the Act and Rules and as such the averments of the petitioner in Paras 7,9 and 10 of the Grounds are of no relevance and liable to be rejected. Citations relied on by the petitioner were not applicable to the present case except the below case. 29. The Hon'ble Supreme Court in State of Andhra Pradesh Vs. Hyderabad Asbestos Cement Products Limited reported in (1994) 94 STC 410 has observed that:- This power can of course be exercised only where sufficient cause is shown by the dealer for not filing them up to the time of assessment before the first assessing authority. If in a given case, a dealer had obtained further time from the first assessing authority and yet failed to produce t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocument produced in support Form : Form XVII and Declaration submitted by the dealer Note: An appeal against this order can be filed before the Appellate Assistant Commissioner within 30 days of receipt of this order. M/s PONDY DIE CASTINGS, Puducherry, Manufacturers of Aluminium and Zinc Rough Castings at A1 A2 Industrial Estate, Sedarapet, Puducherry have reported in their Returns a Total and Taxable turnover of ₹ 10582118.00 and ₹ 10289244.00 claiming exemption on a turnover of ₹ 292874.00 in the annual return in Form 1 filed under the CST Act 1956 for the year 2005-06. The details of the Turnover Reported is as follows:- Tax Period Total Turnover reported Taxable Turnover reported April 2005 to March 2006 Rs.1,03,96,233/- Rs.1,01,03,359/- The check of accounts (Form XVII) and the Declaration forms submitted by the dealer reveals the following:- The details of the Turnover Determined is as follows:- Sl. No. Item Turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id : Rs.505228/- The dealer was asked to file their objection, if any, to the above proposal along with required documents on or before 19/11/2015. It was clearly stated in the notice that. In case no objection is received, orders will be passed accordingly, without further notice. The dealer had requested for extension of time vide their letter dated 21.11.2015. The dealer was given further extension of time up to 07/12/2015 to produce the declaration form. Even after considering their request, and reasonable opportunity been given and further extension of time granted to the dealer, they have not turned up and not produced any further forms in support of their claim of connectional rate of tax. As the assessment cannot be prolonged further, and the dealer had more than 10 years to produce the C Forms, the proposition of tax as per Notice is hereby confirmed and the dealer is finally assessed as follows: Sl. No. Item Turnover Rs. Rate of Tax Rs. Output Tax Rs. 1 Sale of Aluminium and Zinc Rough Castings suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant DY.COMMERCIAL TAX OFFICER (1AC) or to the headman of or to the bill collector failing which the amount will be recovered as if it were arrear of land revenue and you will be liable to fine as provided in rule 11 of the Central Sales Tax (Pondicherry) Rules, 1963. Turnover as determined by the assessing authority in respect of, -- Name of goods Rate of Tax Turnover (1) (2) (3) -As per Assessment Order - Place: Pondicherry Date: 06/01/2015 ADDL. DY. COMMERCIAL TAX OFFICER (1AC) PONDICHERRY Note:- Where payment is made by cheques, the cheques shall be crossed and shall be such as under compilation of Treasury Rules is receivable by the Government treasury concerned. 32. For the assessment year 2004-2005, the Assessing Officer, imposed tax of ₹ 4,80,447/- on the total Turn Over of ₹ 69,37,400/- and issued a demand notice dated 06.01.2016 demanding balance tax amount of ₹ 3,87,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or [in the telecommunications network or] in mining or in the generation or distribution of electricity or any other form of power; (c) are containers or other materials specified in the Certificate of Registration of the registered dealer purchasing the goods, being containers or materials intended for being used for the packing of goods for sale; (d) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate of registration referred to in clause (b) or for the packing of any containers or other materials specified in the Certificate of Registration referred to in clause (c). (4) The provisions of sub-section (1) shall not apply to any sale In the course of inter-State trade or commerce unless the dealer selling the goods furnished to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars In a prescribed Form obtained from the prescribed authority. Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, 8 [refunds, rebates, penalties,] 9 [charging or payment of interest,] compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly: Provided that if in any State or part thereof there is no general sales tax law in force, the Central Government may, be rules made in this behalf make necessary provision for all or any of the matter specified in this sub-section. (2A) All the 2 [provisions relating to offences, interest and penalties] (including provisions relating to penalties in lieu of prosecution for an offence or in addition to the penalties or punishment for an offence but excluding the provisions relating to matters provided for in section 10 and 10A) of the general sales tax law of each State shall, with necessary modifications, apply in relation to the assessment, re-assessment, collection and the enforcement of payment of any tax required to be collected under this Act in such State or in relation to any process connected with such assessment, re-assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hindu undivided family, to pay tax in the event of the dissolution of such firm or partition of such family recovery of tax from third parties appeals, reviews, revisions, references, refunds, rebates, penalties, charging or payment of interest compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly. 36. Rule 11 of the Central Sales Tax (Registration and Turnover) Rules, 1957, deals with determination of turn over. For better appreciation Rule 11 is extracted here under: Determination of Turnover - 11(1) The period of turnover in relation to any dealer liable to pay tax under this Act shall be the same as the period in respect of which he is liable to submit returns under the general sales tax law of the appropriate State: PROVIDED that in relation to a dealer who is not liable to submit returns under the general sales tax law of the appropriate State, the period of turnover shall be a quarter ending on the 30th June, 30th September, 31st December and 31st March as the case may be, in a financial year. 37. Rule 5(6) of the of the Central Sales Tax (Pondicherry) Rules, 1967 reads as hereunder: After t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry than to expound those words in their natural and ordinary sense. The words themselves so alone in such cases best declare the intent of the lawgiver. (ii) In Nairin v. University of St. Andrews reported in 1909 AC 147, the Hon'ble Apex Court held that, Unless there is any ambiguity it would not be open to the Court to depart from the normal rule of construction which is that the intention of the Legislature should be primarily gathered from the words which are used. It is only when the words used are ambiguous that they would stand to be examined and construed in the light of surrounding circumstances and constitutional principle and practice. (iii) In Ram Rattan v. Parma Nand reported in AIR 1946 PC 51, the Hon'ble Mr.S.R.Das, held as follows: The cardinal rule of construction of statutes is to read the statutes literally, that is, by giving to the words their ordinary, natural and grammatical meaning. If, however, such a reading leads to absurdity and the words are susceptible of another meaning, the Court may adopt the same. But if no such alternative construction is possible, the Court must adopt the ordinary rule of literal interpretation. In the present c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of two constructions, one of which is likely to defeat or impair the policy of the Act whilst the other construction is likely to assist the achievement of the said policy, then the courts would prefer to adopt the latter construction. It is only in such cases that it becomes relevant to consider the mischief and defect which the, Act purports to remedy and correct. (viii) In Attorney-General v. HRH Prince Ernest Augustus of Hanover reported in (1957) 1 All.ER 49, Lord Somervell of Harrow has explained unambiguous, as unambiguous in context . (ix) In State of W.B., v. Union of India reported in AIR 1963 SC 1241, the Hon'ble Apex Court held that in considering the expression used by the Legislature, the Court should have regard to the aim, object and scope of the statute to be read in its entirety. (x) In State of Uttar Pradesh v. Dr.Vijay Anand Maharaj reported in AIR 1963 SC 946, the Hon'ble Supreme Court held as follows: But it is said, relying upon certain passages in Maxwell on the Interpretation of Statutes, at p, 68, and in Crawford on Statutory Construction' at p. 492, that it is the duty of the Judge to make such construction of a statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adlaugh v. Clarke, (1883) 8 AC 354 at p. 384 observed as follows:-- I apprehend it is a rule in the construction of statutes that in the first instance the grammatical sense of the words is to be adhered to. If that is contrary to, or inconsistent with, any expressed intention or declared purpose of the statutes, or if it would involve any absurdity, repugnance, or inconsistency, the grammatical sense must then be modified, extended, or abridged, so far as to avoid such an inconvenience, but no further. 11. Maxwell in his book on Interpretation of Statutes (11th Edition) at page 226 observes thus:-- The rule of strict construction, however, whenever invoked, comes attended with qualifications and other rules no less important, and it is by the light which each contributes that the meaning must be determined. Among them is the rule that that sense of the words is to be adopted which best harmonises with the context and promotes in the fullest manner the policy and object of the legislature. The paramount object, in construing penal as well us other statutes, is to ascertain the legislative intent and the rule of strict construction is not violated by permitting the words to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain the juxtaposition in which the rule is placed, the purpose for which it is enacted and the object which it is required to subserve and the authority by which the rule is framed. This necessitates examination of the broad features of the Act. (xvi) In Philips India Ltd., v. Labour Court reported in 1985 (3) SCC 103, the Hon'ble Apex Court, at Paragraph 15, held as follows: (15) No cannon of statutory construction is more firmly, established than that the statute must be read as a whole. This is a general rule of construction applicable to all statutes alike which is spoken of as construction ex visceribus actus. This rule of statutory construction is so firmly established that it is variously styled as 'elementary rule' (See Attorney General v. Bastow [(1957) 1 All.ER 497]) and as a 'settled rule' (See Poppatlal Shall v. State of Madras [1953 SCR 667 : AIR 1953 SC 274]). The only recognised exception to this well-laid principle is that it cannot be called in aid to alter the meaning of what is of itself clear and explicit. Lord Coke laid down that: 'it is the most natural and genuine exposition of a statute, to construe one part of a statute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, Kerala v. Union of India reported in 2004 (1) Kant. LJ 282, the Court held that, The cardinal rule for the construction of Acts of Parliament is that they should be construed according to the intention expressed in the Acts themselves. The object of all interpretation is to discover the intention of Parliament, but the intention of Parliament must be deduced from the language used , for it is well-accepted that the beliefs and assumptions of those who frame Acts of Parliament cannot make the law. If the words of the statute are themselves precise and unambiguous, then no more can be necessary than to expound those words in their ordinary and natural sense. Where the laguage of an Act is clear and explicit, the Court must give effect to it, whatever may be the consequences, for in that case the words of the statute speak the intention of the Legislature. Where the language is plain and admits of but one meaning, the task of interpretation can hardly be said to arise. The decision in a case calls for a full and fair application of particular statutory language to particular facts as found. It is a corollary to the general rule of literal construction that nothing is to be added t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e legislative intention is that every part of the statute should have effect. A construction which attributes redundancy to the legislature will not be accepted except for compelling reasons such as obvious drafting errors. (xxv) In State of Jharkhand v. Govind Singh reported in (2005) 10 SCC 437, the Hon'ble Supreme Court held that, 12. It is said that a statute is an edict of the legislature. The elementary principle of interpreting or construing a statute is to gather the mens or sententia legis of the legislature. 13. Interpretation postulates the search for the true meaning of the words used in the statute as a medium of expression to communicate a particular thought. The task is not easy as the language is often misunderstood even in ordinary conversation or correspondence. The tragedy is that although in the matter of correspondence or conversation the person who has spoken the words or used the language can be approached for clarification, the legislature cannot be approached as the legislature, after enacting a law or Act, becomes functus officio so far as that particular Act is concerned and it cannot itself interpret it. No doubt, the legislature retai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that, 12. It is said that a statute is an edict of the legislature. The elementary principle of interpreting or construing a statute is to gather the mens or sententia legis of the legislature. It is well-settled principle in law that the court cannot read anything into a statutory provision which is plain and unambiguous. (xxvii) In A.N.Roy Commissioner of Police v. Suresh Sham Singh reported in AIR 2006 SC 2677, the Hon'ble Apex Court held that, It is now well settled principle of law that, the Court cannot change the scope of legislation or intention, when the language of the statute is plain and unambiguous. Narrow and pedantic construction may not always be given effect to. Courts should avoid a construction, which would reduce the legislation to futility. It is also well settled that every statute is to be interpreted without any violence to its language. It is also trite that when an expression is capable of more than one meaning, the Court would attempt to resolve the ambiguity in a manner consistent with the purpose of the provision, having regard to the great consequences of the alternative constructions. (xxviii) In Adamji Lookmanji Co. v. Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... literal rule of interpretation should be followed, and hence the court should neither add nor delete words in a statute. However, in exceptional cases this can be done where not doing so would deprive certain existing words in a statute of all meaning, or some part of the statute may become absurd. (xxxii) In Phool Patti v. Ram Singh reported in (2009) 13 SCC 22, the Hon'ble Supreme Court held that, 9. It is a well-settled principle of interpretation that the court cannot add words to the statute or change its language, particularly when on a plain reading the meaning seems to be clear. (xxxiii) In Mohd. Shahabuddin v. State of Bihar, reported in (2010) 4 SCC 653, the Hon'ble Supreme Court held that, 179. Even otherwise, it is a well-settled principle in law that the court cannot read anything into a statutory provision which is plain and unambiguous. The language employed in a statute is a determinative factor of the legislative intent. If the language of the enactment is clear and unambiguous, it would not be proper for the courts to add any words thereto and evolve some legislative intent, not found in the statute. Reference in this regard may be ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIJ 273 SC (1), the Hon'ble Supreme Court held that, 6. It is now well settled that a provision of a statute should have to be read as it is, in a natural manner, plain and straight, without adding, substituting or omitting any words. While doing so, the words used in the provision should be assigned and ascribed their natural, ordinary or popular meaning. Only when such plain and straight reading, or ascribing the natural and normal meaning to the words on such reading, leads to ambiguity, vagueness, uncertainty, or absurdity which were not obviously intended by the Legislature or the Lawmaker, a court should open its interpretation tool kit containing the settled rules of construction and interpretation, to arrive at the true meaning of the provision. While using the tools of interpretation, the court should remember that it is not the author of the Statute who is empowered to amend, substitute or delete, so as to change the structure and contents. A court as an interpreter cannot alter or amend the law. It can only interpret the provision, to make it meaningful and workable so as to achieve the legislative object, when there is vagueness, ambiguity or absurdity. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed; it cannot import provisions in the statutes so as to supply any assumed deficiency. (vi) In Commissioner of Income Tax v. Mr.P.Firm, Muar reported in AIR 1965 SC 1216, the Hon'ble Apex Court held that equity is out of place in Tax Laws. (vii) In Income Tax Office, Tuticorin v. T.S.Devinatha Nadar reported in AIR 1968 SC 623, the Hon'ble Apex Court held that, if the words of a taxing statute fail, so must the tax and the Courts cannot, except rarely and in clear cases, help the draftsman by a favorable construction. After considering the statement of Rowlatt, J., it held thus, These principles have been accepted as correct both by the English Courts and the superior courts in this country. It is now well settled that if the interpretation of a fiscal enactment is in doubt, the construction most beneficial to the subject should be adopted even if it results in obtaining an advantage to the subject; the subject cannot be taxed unless he comes within the letter of the law and the argument that he falls within the spirit of the law cannot avail the department. (viii) In CIT v. Madho Prasad Jatia reported in 1976 (4) SCC 92, the Hon'ble Apex Court h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) There is no equity in tax, and the principle of strict or literal construction applies in interpreting tax statutes. Hence, on the plain language of the statute, if the assessee is entitled to two benefits, he has to be granted both these benefits. (ii) If there are two reasonable interpretation of taxing statutes, the one in favour of the assessee has to be accepted. 42. Submission of returns in time, has not been disputed by the respondent. Contention of the petitioner that 'C' Form Declarations for all transactions were already submitted at the time of assessment, and some of them were lost by the assessing officer is not substantiated. As rightly contended by the respondent, if all the Form-C declarations were already submitted then, there is no reason for asking time, and allege denial of opportunity. During the course of argument, submission was made that the returns submitted for the subsequent years from 2006-07 onwards, have been assessed and orders passed. Rule 5(6) of the Central Sales Tax (Pondicherry) Rules, 1967 states that after the closure of the year, the assessing officer shall after such scrutiny of the accounts and after such enquiry as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time. Therefore, after the close of the year, the assessing officer, after scrutiny of the accounts and after such enquiry, ought to have passed the assessment orders, in the following year. The intention of the legislature is that after the close of the year, assessment has to be done and tax, if any, should be collected from the assessee. 47. Assessment cannot be carried forward, at any time. The word, and , used in Rule 5(6) of the Central Sales Tax (Pondicherry) Rules, 1967, with the expression, after the closure of the year in the opening sentence and the duty cast upon the assessing officer to scrutinize the accounts and after conducting any enquiry, necessary for passing an order, for the preceding year or for the year to which, returns are submitted, has to read conjunctively and cannot be read disjunctively, meaning thereby, that immediately after the submission of returns, assessment has to be done and orders passed and not at any time, as submitted. 48. Merely because the assessee has not submitted Form 'C' declarations within time, that would not empower the Assessing Officer to pass the order of assessment at any time and in the case on hand, a decade a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After the close of the year the assessing authority shall after such scrutiny of the accounts and after such enquirq as he considers necessary satisfy himself that the return or returns filed are correct and complete and finally assess under a single order the tax or taxes payable under the act for any year. 51. The Hon'ble Apex Court held that substitution or addition should not be made to a statute by process of interpretation. Reference can be made to few decisions, (i) In CIT v. Badhraja and Company reported in 1994 Supp (1) SCC 280, the Hon'ble Apex Court held that an object oriented approach, however, cannot be carried to the extent of doing violence to the plain meaning of the Section used by rewriting the Section or substituting the words in the place of actual words used by the legislature. (ii) In Dadi Jagannadham v. Jammulu Ramulu reported in (2001) 7 SCC 71, the Hon'ble Supreme Court held that, 13. We have considered the submissions made by the parties. The settled principles of interpretation are that the court must proceed on the assumption that the legislature did not make a mistake and that it did what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to Section 11-A, and it is well settled that the court should not add or delete words in a statute. 52. If initial assessment is permitted to be done, at any time, say in the case on hand, after a decade, after the submission of the returns, for the years 2004-2005 and 2005-2006 and if for any reasons, the whole or part of the turn over is assessed at a rate lower than the rate at which it is assessable then, it would give leverage to the Taxing Authority, to do assessment, as in the case on hand, after 10 years and re-assess upto a further period of another five years, on the whole, 17 years. 53. When a statute mandates re-assessment to be done, within five years, it cannot be contended that assessment can be done at any time. When the assessee is mandated to submit returns, within a prescribed period and the Assessing Officer has to scrutinise the accounts and to conduct any enquiry, if he considers necessary and pass an assessment order, levy tax, if any and collect the same, after the close of the financial years, it cannot be contended that initial assessment can be made at any time. In the light of the decisions stated supra, in particular, Taxing Laws, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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