Strict construction of tax law bars implied assessment power where no return was filed and entry tax recovery lacked statutory authority.

Where the Entry Tax Act did not expressly empower assessment of an importer who had not filed returns, the assessing authority could not make a belated assessment and recover entry tax by implication. The scheme contemplated returns under Section 7 and assessment on the basis of a return under Section 8, and taxation statutes must be strictly construed. In the absence of a specific enabling provision authorising assessment after a long lapse of time, the assessment was held without jurisdiction and could not be sustained. The impugned assessment was therefore set aside.

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Issues: Whether, in the absence of an express provision under the Entry Tax Act enabling assessment of an importer who failed to file returns, the assessing authority could make an assessment long after import and recover entry tax.

Analysis: The assessment was based on the purchaser's disclosure of sale of the capital asset, but the governing scheme contemplated returns under Section 7 and assessment on the basis of a return under Section 8. The decision relied on the settled position that a taxation statute must be construed strictly, and that where the statute does not expressly authorise assessment of an importer who has not furnished a return, the authority cannot create such power by implication. The absence of a specific enabling provision to assess the importer after a considerable lapse of time meant that the assessment could not be sustained.

Conclusion: The assessment was without jurisdiction and could not be made for recovery of entry tax in the absence of an express statutory provision.

Final Conclusion: The impugned assessment was set aside and the writ petition succeeded on the ground that the assessing authority lacked jurisdiction to proceed in the manner adopted.

Ratio Decidendi: In taxation matters, recovery cannot be made by implication; unless the statute expressly authorises assessment of a person who has not filed the required return, the assessing authority has no jurisdiction to levy or recover the tax.

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