Assessment power under sales tax licence cancellation lay only with the Sales Tax Officer, not the Assistant Sales Tax Officer.

On cancellation of a licence under section 13 of the M.P. General Sales Tax Act, rule 5 of the M.P. General Sales Tax Rules was treated as conferring the power to assess the dealer only on the Sales Tax Officer. The rule was read to authorise cancellation after hearing the licensee and assessment to tax under section 14 by that officer alone, and no provision was shown enabling the Assistant Sales Tax Officer to exercise that power. An assessment made by the Assistant Sales Tax Officer was therefore without jurisdiction.

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Issues: Whether, on cancellation of a licence under section 13 of the M.P. General Sales Tax Act, 1958, rule 5 of the Madhya Pradesh General Sales Tax Rules, 1959 vested the power to assess the dealer only in the Sales Tax Officer, or whether the Assistant Sales Tax Officer could validly make the assessment.

Analysis: Rule 5 provided that where the appropriate Sales Tax Officer found breach of the licence conditions or of the Act or the Rules, he might cancel the licence after hearing the licensee and assess him to tax in accordance with section 14. The language of the rule was treated as conferring the assessment power on the Sales Tax Officer alone. No provision was shown that authorized the Assistant Sales Tax Officer to exercise that power under rule 5.

Conclusion: The power to assess in such a case vested only in the Sales Tax Officer, and the assessment by the Assistant Sales Tax Officer was without jurisdiction. The reference was answered in the affirmative and against the department.

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