Original assessment for unregistered prior period is not a review of registration order; commissioner's sanction unnecessary.

An assessment made under section 13(5) for a prior period was held to be an original statutory assessment, not a review of the earlier registration order, because section 9 only authorises registration and does not finally determine tax liability for an earlier period. The registration certificate's stated commencement date did not convert the later assessment into a review. As rule 39(3) applies only to review of prior orders by subordinate officers, previous sanction of the Commissioner was unnecessary. The issue was answered in favour of the State and against the assessee.

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Issues: Whether an assessment made under section 13(5) of the Bihar Sales Tax Act for a period prior to the date from which the registration certificate stated the dealer to be liable to pay tax amounted to a review of the earlier registration order, and whether previous sanction of the Commissioner was therefore required under rule 39(3) of the Bihar Sales Tax Rules, 1949.

Analysis: Section 9 of the Bihar Sales Tax Act empowers the prescribed authority only to decide an application for registration and to grant a certificate of registration. It does not authorise an inquiry into the dealer's liability to tax for an earlier period not covered by the registration application. Even if the registration certificate mentioned a starting point of liability, that statement did not create a final adjudication beyond the authority conferred under section 9. The subsequent proceedings were founded on section 13(5), which specifically authorises assessment where information shows that a dealer was liable to pay tax for a period, wilfully failed to apply for registration, and is then assessed to the best of judgment after hearing. In such a case, the proceeding is an original assessment within the statutory power and not a review of the registration order under section 24(5). Consequently, rule 39(3), which governs review of prior orders by subordinate officers, had no application.

Conclusion: The assessment did not amount to a review, and prior sanction of the Commissioner was not necessary. The question was answered in favour of the State and against the assessee.

Ratio Decidendi: A statutory assessment made under a provision specifically authorising assessment of an unregistered or improperly registered dealer for a prior period is not a review of an earlier registration order, even if the registration certificate mentions a commencement date of liability.

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