TaxTMI 
TaxTMI 
1964 (9) TMI 89
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act, 1939, can revise an order passed by the Appellate Assistant Commissioner after the period prescribed by rule 17(1) of the Madras General Sales Tax Rules, 1939 has expired, on the ground that turnover had escaped assessment. The year of assessment in each of these cases is 1953-1954. On the expiry of nearly three years after the end of that year, notices were issued to the petitioners, apparently under rule 17 of the Madras General Sales Tax Rules, 1939, to show cause why turnover which it was alleged had escaped assessment should not be assessed. Though the petitioners showed cause, the proceedings ended against the petitioners in that assessments were made relating to the alleged escaped turnovers. The petitioners appealed and the app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve been passed in violation of the principles of natural justice in that they were passed without notice to the petitioners. Thirdly it was contended that the particular Deputy Commissioner who passed the orders Exts. P.5 was not notified to be the authority competent to exercise such powers. I am not dealing with the last two grounds in this judgment for, I think the case can be disposed of on the first of the grounds relied on by counsel on behalf of the petitioners. 3. It is necessary to read Section 12(2) as also rule 17(1) of the Madias General Sales Tax Act and Rules, 1939. 12 (2) The Deputy Commissioner may- (i) suo motu, or (ii) in respect of any order passed or proceeding recorded by the Commercial Tax....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t rule 17 is a special provision in the sense that it deals with and deals only with escaped turnover or an application of a lower rate. Section 12 on the other hand, enables the officers enumerated therein to re-open orders and pass such orders as they deem fit provided they are satisfied from the records that the orders are lacking in legality or propriety. In this respect the powers under section 12 are very much wider than that conferred on the authorities by rule 17(1). In another sense, as pointed out by counsel on behalf of the revenue, the powers under Section 12 are limited in that the scope of the enquiry under that section must always be limited to an examination of the records of proceedings which culminated in the order which i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ording of Section 12 and Rule 17 here. In fact the only change that I can notice is that in Section 34 of the Travancore-Cochin Agricultural Income Tax Act XXII of 1950, there are the words "subject to the provisions of this Act" which are not found in Section 12 of the Madras General Sales Tax Act, 1939. Counsel on behalf of the Revenue is correct that, this aspect has also been relied on by the learned Judges who decided the case in 1958 K. L. J. 834. Their Lordships concluded that in relation to escaped turnover, no action can be taken under Section 34 of the Travancore-Cochin Agricultural Income Tax Act XXII of 1950, after the period prescribed in Section 35 which specifically provides for assessment of escaped income. The principle of ....