TaxTMI 
TaxTMI 
1980 (1) TMI 190
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...." 2.. The assessee deals in grocery and stationery articles and was an unregistered dealer in respect of such business for the period between 8th June, 1968, and 31st March, 1970. He, however, got himself registered with effect from 25th February, 1970. The Sales Tax Officer issued notice under section 12(5) of the Act requiring production of accounts and on examination of the same held that the assessee had incurred liability for registration under the Act from the quarter ending on 31st March, 1969. Accordingly, he made assessments for the quarters ending 31st March, 1969, and 31st March, 1970. 3.. The Assistant Commissioner of Sales Tax on the assessee's appeals held that the assessee's liability for registration commenced from 1st January, 1969. He, however, annulled the assessments for the quarters ending 30th September, 1969, and 31st December, 1969, by holding: "........ Further, in view of the amending Act, 1968, the appellant's assessment for the quarters ending 30th September, 1969, and 31st December, 1969, is not sustainable as liability does not survive beyond 30th June, 1969. For the quarter ending 31st March, 1970, the appellant got registered on 25th Februar....
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....sioner of Income-tax [1971] 80 ITR 155. tax under the Act is to continue to be liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed Rs. 25,000. Therefore, the assessments made for the subsequent periods in this case were also not invalid." What have been said on the earlier occasion apply in all fours to the present case. The period of assessment is within the limit of three years from 30th June, 1969, and even if the assessee's turnover fell short of Rs. 25,000, the liability attached under section 4(3) of the Act continued his liability to pay tax and for the period under consideration, the assessment could not be annulled. The Tribunal, in our opinion, went wrong in according relief to the assessee. Our answers to the questions referred, therefore, are: (i) On the facts and in the circumstances of the case, the assessee's liability determined under section 4(2) of the Act prior to its amendment with effect from 1st July, 1969, by amending Act 15 of 1968, will continue for a period of three consecutive years as provided under section 4(3) of the Act. (ii) On the facts and in the circumstances of the case, the Tri....
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.... hold that the assessee's liability would commence with effect from 1st January, 1969. Accordingly, he taxed the assessee for the quarter ending 31st March, 1969. With effect from 1st July, 1969, amendment of section 4 by Orissa Act 15 of 1968 came into force -by which for the sum of Rs. 10,000, appearing in the original provision, Rs. 25,000 was substituted. Yet, the assessing officer assessed the assessee to tax by relying upon the provision of section 4(3) of the Act. 3.. The assessee's first appeals were dismissed. In second appeals, the assessee reiterated his objection, namely, that in view of the provisions of section 4(1) as amended by Orissa Act 15 of 1968, the assessee had no liability at all and all the assessments were without basis. The Member, Additional Sales Tax Tribunal, accepted the assessee's contention by saying: "In view of the arguments it is to be seen whether on admitted turnover of Rs. 30 per day as has been fixed by the assessing officer, the dealer is liable to be taxed in view of the amendment of section 4(l) effected by the amending Act of 1968. After the amendment, sub-section (1) of section 4 reads as follows: 'Subject to the provision....
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....ay tax under this Act on sales which have taken place in Orissa with effect from the quarter immediately following a period not exceeding twelve months during which his gross turnover on sales which have taken place in Orissa first exceeded Rs. 10,000." This provision remained in force until it was amended by Orissa Act 15 of 1968. The limit of Rs. 10,000 was raised to Rs. 25,000 and the State Government was authorised by notification to appoint a date with effect from which the amended provision in section 4(1) was to take effect. Admittedly, the appointed date is 1st July, 1969. The amended provision has already been noticed in the extracted portion of the Tribunal's order and it is unnecessary to quote it again. 5.. The assessee's stand has been that as his turnover during the year immediately preceding the date of commencement of the Orissa Sales Tax (Amendment) Act of 1968 (i.e., 1st July, 1969) has not exceeded Rs. 25,000, he shall not have liability under the Act and it is claimed that in view of the language of sub-section (1), the year preceding the appointed date must be taken as the relevant period for computing the quantum of gross turnover. The learned standing c....