1987 (11) TMI 343

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....e filed its return relating to the quarter ending 31st March, 1969 on 7th August, 1969 before the Commercial Tax Officer of Mahaboobnagar under the Central Sales Tax Act, 1956 even though the last date for submission of return prescribed by law was 24th May, 1969. The return filed by the assessee showing a taxable turnover of Rs. 18,25,410.72 was accepted and it was called upon to pay sales tax of Rs. 45,424.48 under the Act. The assessment order was passed on 2nd August, 1973 beyond four years from 31st March, 1969 which was the last day of the assessment year 1968-69. Aggrieved by the assessment order which had been passed beyond the period of four years from the last day of the assessment year the assessee filed an appeal before the Assistant Commissioner (CT), Appeals, Warangal, in Appeal No. 5 of 1975-76 and that appeal was dismissed on 14th September, 1976. Against the order of the Assistant Commissioner (CT), Appeals, Warangal, the assessee filed an appeal before the Sales Tax Appellate Tribunal, Andhra Pradesh, at Hyderabad in Tribunal Appeal No. 183 of 1977. That appeal also was dismissed. The assessee thereafter filed a revision petition in Tax Revision Case No. 23 of 19....

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.... 12 or section 12-A as the case may be under the Act shall submit such return or returns relating to his turnover, in such manner, within such period and to such authority as may be prescribed. The material part of section 14 which is relevant for purposes of these cases reads thus: "14. Assessment of tax.-(1) If the assessing authority is satisfied that any return submitted under section 13 is correct and complete, he shall assess the amount of tax payable by the dealer on the basis thereof; but if the return appears to him to be incorrect or incomplete he shall, after giving the dealer a reasonable opportunity of proving the correctness and completeness of the return submitted by him and making such inquiry as he deems necessary, assess to the best of his judgment, the amount of tax due from the dealer. An assessment under this section shall be made only within a period of four years from the expiry of the year to which the assessment relates...... (3) Where any dealer liable to tax under this Act- (i) fails to submit return before the date prescribed in that behalf, or (ii) produces the accounts, registers and other documents after inspection, or (iii) submits a return sub....

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....he prescribed date the assessment should be completed within a period of four years prescribed by sub-section (1) of section 14 of the Act or within a period of six years permitted under sub-section (3) of section 14 of the Act. Sub-section (1) of section 14 of the Act relates to an assessment which may be made on the basis of a return submitted under section 13 of the Act. Section 13 of the Act as stated above provides that every dealer shall submit such return or returns relating to his turnover in such manner within such period and to such authority as may be prescribed. The return on the basis of which an assessment is to be made under section 14(1) of the Act is, therefore, a return filed within the prescribed period and in such a case the assessment has to be completed within a period of four years from the expiry of the year to which the assessment relates. The return referred to in sub-section (1) of section 14 of the Act cannot be a return filed beyond the prescribed date is emphasised by clause (i) of sub- section (3) of section 14 of the Act which refers to a case where a dealer liable to pay tax fails to submit return before the date prescribed in that behalf. All cases....

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....dgment assessment as can be seen from the latter part of the said sub-section which reads: "but if the return appears to him to be incorrect or incomplete he shall, after giving the dealer a reasonable opportunity of proving the correctness and completeness of the return submitted by him and making such inquiry as he deems necessary, assess to the best of his judgment, the amount of tax due from the dealer". Yet such best judgment assessment has to be completed within a period of four years from the expiry of the year to which the assessment relates. Hence it cannot be held that merely because the assessments in question are not best judgment assessments sub-section (3) of section 14 of the Act is inapplicable for best judgment assessments can be made both under sub- section (1) and sub-section (3) of section 14 of the Act. That the assessment is a best judgment assessment is not, therefore, decisive of the question involved in these appeals. The decision of the Andhra Pradesh High Court in the State of Andhra Pradesh v. Pyarelal Malhotra [1962] 13 STC 946 and the decision of this Court in the State of Madras v. S.G. Jayaraj Nadar & Sons [1971] 28 STC 700 which dealt with the que....