Escaped turnover assessment under sales tax rules extends to non-filing, but reassessment failed because limitation had expired.

Rule 17(1) of the Madras General Sales Tax Rules was construed broadly to cover turnover that escaped assessment for any reason, including a dealer's failure to file any return so that the whole turnover remained unassessed. The provision was held to apply not only to partial omission from assessment but also to complete non-disclosure of turnover. Applying that construction, the reassessment proceedings fell within rule 17(1), but the applicable limitation period had already expired when the assessment was made, rendering the assessment invalid. The Tribunal's order setting aside the assessment was therefore upheld.

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Issues: Whether the assessment to sales tax on turnover which had not earlier been returned or assessed fell within rule 17(1) of the Madras General Sales Tax Rules, and whether the reassessment was barred by limitation.

Analysis: Rule 17(1) was construed by reference to its wide opening words, "if for any reason", and to the expression "turnover which has escaped assessment". The provision was held to cover not only cases where part of the turnover had been omitted from assessment, but also cases where the dealer had failed to file any return and the whole turnover had therefore escaped assessment. The reasoning adopted earlier in the Full Bench decision was followed, namely that the rule was concerned with turnover that had in fact escaped assessment, irrespective of whether the escape resulted from inadvertence, omission, concealment, or default by the dealer. On that construction, the assessment proceedings were governed by rule 17(1), and the relevant limitation period had already expired when the assessment was made.

Conclusion: The assessment was within the scope of rule 17(1), but it was time-barred and therefore invalid. The Tribunal's order setting aside the assessment was upheld.

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