Annual return period by operation of law barred premature sales tax assessment and Form VI notice.

Where a dealer's average taxable turnover did not exceed 10% of average gross turnover, the Bengal Finance (Sales Tax) Act, 1941 treated the return period as annual by operation of law. The absence of a formal order by the Commissioner or Assistant Commissioner did not alter that statutory position. On that basis, the Commercial Tax Officer could not proceed on the footing that quarterly returns applied, and could not issue Form VI notice or commence assessment before the statutory time for the annual return had arisen. The document states that the attempted assessment was without lawful authority and that the proceedings were without jurisdiction.

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Issues: Whether, on the facts, the dealer's return period stood amended by operation of law so that annual returns were applicable, and whether the Commercial Tax Officer had jurisdiction to issue notice in Form VI and commence assessment proceedings before expiry of the statutory period.

Analysis: Under section 10(2) of the Bengal Finance (Sales Tax) Act, 1941, where a dealer's average taxable turnover does not exceed 10% of the average gross turnover, the prescribed return period is annual. The absence of a formal order by the Commissioner or Assistant Commissioner did not alter that legal position, because the statute itself governed the return period. On that footing, the Commercial Tax Officer could not treat quarterly returns as operative or start assessment proceedings before the statutory time for annual return had arisen. The attempted assessment was therefore without lawful authority.

Conclusion: The notice in Form VI and the assessment proceedings were without jurisdiction, and the assessment was set aside in favour of the assessee.

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