1962 (1) TMI 49

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... failed, He preferred a further appeal to the Sales Tax Appellate Tribunal, Madras, and disputed the assessment of tax at the rate of 8 per cent. on the turnover of Rs. 88,732-73 nP. This turnover is comprised of the following items: Rs. NP. 1. Turnover of sales of medium cloth from 1st April, 1957 to 31st March, 1958 82,543-08 2. Turnover of sales of fine and superfine cloth from 1st September, 1957 to 12th December, 1957 7,194-65 Total 89,737-73 The petitioner's contention was that the additional rate of 8 per cent. levied under the Madras Medium Cloth (Sales Tax) Act of 1954 (Act XLI of 1954) as modified by an amendment of the year 1957 was not leviable as that Act was repealed on and from 1st April, 1958, by Madras Act II of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and the Madras Medium Cotton Mill Cloth (Sales Tax) Act, 1954 (Madras Act XLI of 1954) are hereby repealed. (2) Notwithstanding such repeal, all taxes, fines and other sums which became payable under either of the Acts repealed by sub-section (1) immediately before the 1st April, 1958, may be recovered as if this section had not been enacted." In the present case pre-assessment notice was served upon the petitioner on 10th March, 1959, and the assessment itself was completed only on 27th March, 1959. The petitioner submits that no valid levy of tax under Madras Act XLI of 1954 can be made after 1st April, 1958, on which date it stood repealed by reason of Madras Act II of 1958. The petitioner further submits that the saving provision und....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eof by a Court should be to secure that object, unless crucial omission or clear direction makes that end unattainable. Now, there are three stages in the imposition of a tax: there is the declaration of liability, that is the part of the statute which determines what persons in respect of what property are liable. Next, there is the assessment. Liability does not depend on assessment. That, ex hypothesis has already been fixed. But assessment particularises the exact sum which a person liable has to pay. Lastly, come the methods of recovery, if the person taxed does not voluntarily pay." We are of opinion that section 9(2) of Madras Act II of 1958 saves liability to pay tax incurred before 1st April, 1958. The operation of that provision ....