Escaped turnover can still be reassessed in the true dealer's hands, with prior tax payments adjusted to avoid double collection.

Escaped turnover may be assessed under section 19(1) of the Kerala General Sales Tax Act where the turnover belongs to the assessee but was earlier assessed in another dealer's name; the prior assessment does not prevent escape-assessment proceedings. The article also states that reassessment of the same turnover is not barred as double taxation, although any tax already realised on that turnover must be adjusted so the revenue does not retain tax twice. The analysis draws support from the analogous principle under income-tax escape-assessment law and treats the true ownership of the business turnover as the ative factor.

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Issues: (i) Whether escaped turnover could be assessed under section 19(1) of the Kerala General Sales Tax Act, 1963, when the same turnover had earlier been assessed in the name of another dealer. (ii) Whether such reassessment would be barred as double taxation, and if not, whether adjustments were required for any tax already realised.

Issue (i): Whether escaped turnover could be assessed under section 19(1) of the Kerala General Sales Tax Act, 1963, when the same turnover had earlier been assessed in the name of another dealer.

Analysis: The provision applies where the turnover of a dealer has escaped assessment. On the findings accepted in the case, the business treated as belonging to the other firm was the business of the revision petitioner, and therefore the relevant turnover was the petitioner's own turnover. The earlier assessment in another name did not prevent action under section 19(1). The reasoning was supported by the analogous principle under section 147 of the Income-tax Act, 1961, that income may be treated as escaped assessment even if it was included in some other assessment.

Conclusion: The reassessment under section 19(1) was valid and not barred.

Issue (ii): Whether such reassessment would be barred as double taxation, and if not, whether adjustments were required for any tax already realised.

Analysis: Reassessment of the same turnover in the hands of the true dealer could create a practical risk of double collection, but that did not negate the power to assess the escaped turnover. The proper course was to make suitable adjustments if tax had already been paid on the same turnover in the earlier assessment, so that the revenue did not retain tax twice on the same turnover.

Conclusion: The plea of double taxation did not defeat the reassessment, but appropriate adjustments were required for any amount already realised.

Final Conclusion: The tax revision cases were rejected, while preserving the need for adjustment of any prior payments relating to the same turnover before recovery proceedings.

Ratio Decidendi: Turnover that belongs to the assessee and has not been assessed in the assessee's own hands is "escaped assessment" under the sales tax escape-assessment provision, even if it was wrongly assessed in the name of another person; any prior realisation on the same turnover must be adjusted, not treated as a bar to reassessment.

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