# 1I STATE OF PUNJAB v. SANT SINGH KANWARJIT SINGH

- **Citation:** [1970] 3 S.C.R. 311
- **Court:** Supreme Court of India
- **Decided:** 1969-12-04
- **Case number:** Civil Appeal No. 2159 of 1966
- **Bench:** J.C. Shah, K. S. Hegde
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1i-state-of-punjab-v-sant-singh-kanwarjit-singh-4918
- **Pages:** 3

## Headnote

311
.
P~mjab General Sales Tax Act (Punj. 46 of 1948), s. 10(1)-Provi•
sion zn Act and Rules for quarterly returns <lnd paynzent of tax due thereon-Submission of quarterly returns-Right of Sales Tax Officer to 1nakt
assessrnent.
The assessee, a dealer registered under the Punjab General Sales Tax
Act, 1948, filed returns of the turnover of its business for the quarters
ending 30th June,
1962 and 30th September,
1962 and the Sales Tax
Officer assessed the tax for the two quarters.
On the question whether the tax could be iwesscd onfy at the end of
.the year and not during the year,
HELD : U oder the Act, sales-tax is a yearly tax, but that does not
imply that assessment of tax quarterly is illegal if provision is made in
the Act for quarterly returns and assessment. Since the provisions [elating
to returns and assessment, namely, ss. 10 and 11, and rule 20, contemplate submission of quarterly returns, assessment of tax due thereon and
payment of the tax by the taxpayers, the tax was validly assessed. [313 D,
F-G]
Mathura Prvishad & Sons v. State of Punjab, [1962] Supp. I S.C.R.
913, explained.
Om Prakash Rajinder Kumar v. K. K. Opal, I.L.R. J 1967]
Vol. 1
Punjab & Haryaoa 155, approved.

## Text

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1I
STATE OF PUNJAB
v.
SANT SINGH KANWARJIT SINGH
December 4, 1969
[J.C. SHAH AND K. S. HEGDE, JJ.)
311
.
P~mjab General Sales Tax Act (Punj. 46 of 1948), s. 10(1)-Provi•
sion zn Act and Rules for quarterly returns <lnd paynzent of tax due thereon-Submission of quarterly returns-Right of Sales Tax Officer to 1nakt
assessrnent.
The assessee, a dealer registered under the Punjab General Sales Tax
Act, 1948, filed returns of the turnover of its business for the quarters
ending 30th June,
1962 and 30th September,
1962 and the Sales Tax
Officer assessed the tax for the two quarters.
On the question whether the tax could be iwesscd onfy at the end of
.the year and not during the year,
HELD : U oder the Act, sales-tax is a yearly tax, but that does not
imply that assessment of tax quarterly is illegal if provision is made in
the Act for quarterly returns and assessment. Since the provisions [elating
to returns and assessment, namely, ss. 10 and 11, and rule 20, contemplate submission of quarterly returns, assessment of tax due thereon and
payment of the tax by the taxpayers, the tax was validly assessed. [313 D,
F-G]
Mathura Prvishad & Sons v. State of Punjab, [1962] Supp. I S.C.R.
913, explained.
Om Prakash Rajinder Kumar v. K. K. Opal, I.L.R. J 1967]
Vol. 1
Punjab & Haryaoa 155, approved.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2159 of
1966.
Appeal from the order dated October 20, 1965 of the Punjab
High Court in Letters Patent Appeal No. 262 of J 965.
V. C. Mahajan and R, N. Sachthey, for the appellant.
Sobhag Mal Jain and B. P. Maheshwari, for the respondent.
The Judgment of the Court was delivered by
Shah, J.
Sant Singh Kanwarjit Singh-hereinafter called the
assessee is registered as a dealer under the Punjab General Salestax Act, 1948. The assessee filed returns of the turnover of its
business for the quarters ending 30th June, 1962 and 30th Septeinber, 1962, but without appending thereto the list of sales to
registered dealers as required by rule 30 framed under the Act.
The Sales-tax Officer proceeded to make "exparte assessments"
for the two quarters.
The assessee then moved a petition in the High Court of
Punjab for a writ quashing the orders of assessment.
A single
312
SUPREME COURT REPORTS
[1970) 3 S.C.R.
Judge following the Judgment of the Punjab High Court in Mansa
Ram Sushi/ Kumar v. . The Assessing Authority, Ludhiana, ( 1 }
quashed the orders of assessment.
An appeal by the State of
Punjab was summarily dismissed by a Division Bench of the High
Court.
The scheme of levy and assessment of tax under the Act may
be briefly noticed. Every dealer who;-e gross turnover during the
year preceeding commencement to the Act el\ceeded the taxable
turnover is liable to pay tax on all sales effected after the quarter
after the commencement of the. Act. Tax is to be levied on the
taxable turnover at such rates as the State Government may direct.
Tax is payable under the Act in the manner provided and at such
intervals as may be prescribed.
S. [10(1)].
A registered dealer
furnishing a return has to pay the amount of tax due according
to the return into the Government Treasury.
The l!Ssessing autllority may without requiring the presence
of the registered dealer or production by him of any evidence
hold · that the returns furnished are correct and complete, and
proceed to assess the amount of tax due from the dealer on the
basis of these returns; if the assessing authority is not satisfied with
the return he may require the registered dealer to remain present
in person or by pleader and to produce evidence on which he
may rely upon in support of the return.
The Assessing authority may after hearing the evidence as the dealer may produce
and such other evidence as the Assessing authority may require,
assess the amount of tax due from the dealer.
. The scheme is plain. A registered dealer must fill' return of
the turnover in the manner prescribed and at such •. ,~.xvals as
may be prescribed.
The dealer while submitting the return has
also to pay tax according to the return.
The Assessing Officer
may accept the return or he may call upon the tax payer to
explain the turnover, and support it by evidence.
ljndet· the Act sales-tax is a yearly tax, but the provisions
relatmg to assessment contemplate assessments for periods shorter
than a complete year. and for that purpose the tax payers are
required by the Act to submit periodical returns of their turnpver and to pay tax due thereon.
fn Mansa Ram Sushi/ Kumar v. . The Assessing Authority
Ludhiana ('), a Division Bench of the Punjab High Court held that
the tax imposed under the Punjab General Sales Tax Act may
be assessed only at the end of the y~ar and not during the pendency of the year as and when the return is filed, and in the
absence of machinery in the Act for making Assessment for a
(I) (1964) US.T.C.837.
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PNU.TAB v. KANWAR.TIT SINGH (Shah, I.)
313
period shorter than the year of assessment, the order of assessment of tax for a quarter before the expiry of the assessment year
is illegal.
In reacnmg that conclusion the High Court relied
upon the judgment of this Court in Mis. Mathura Prasad
&
Sons v. State of Punjab ('). But in Mathura Prashad's case(') this
Court considered whether an exemption granted by the State
Government during the course of the year was applicable to the
whole or only a part of the year of assessment. This Court held(Mr.
Justice Kapur dissenting) that the exemption operated for the entire
financial year.
The Court observed that the tax was a yearly
tax levied on the taxable turnover of a dealer for the year; it was
Collected in some cases quarterly, some cases yearly; and proceeded to hold that whenever the exemption came in, in the year
for which the tax was payable, it exempted sales throughout the
year unless notification fixed the date of commencement of the
tax. In our judgment the principle of that case has no beariny
on the question arising in this case.
The Court in Mathura
Prasad's case(') merely emphasised that the tax was !Ill allll\1al
tax but that did not imply that assessment of tax quarterly was
illegal. Adjustment may possibly have to be made when the
_assessment of the final quarter is made, but the taxing authorities
~re not debarred from determining and assessing the quarterly ,
turnover of tax. Mansa Ram's case (2 ) has since been over-ruled
by a full Bench of the Punjab High Court in Mis. Om Parkash
Rajinder Kumar v. K. K. Opal (3). The Court in that case held
that Sales-tax may be assessed under section 11 of the Act on the
basis of quarterly returns submitted by the dealer pursuant to the
notice served on him under sec. 10(3) before the close of the
.relevant financial year.
In our judgment the High Court was right in holding in Mis.
Om Parkash Rajinder Kumar's case (') that the asses,ment proF
·ceeding under the Punjab General Sale tax may be started even
before the expiry of the year where provision is made for submission of periodical returns, and that such assessments are not provisional.
The appeal is allowed and the order passed by the High Court
set aside and the petition is dismissed.
There will be no order
G
to cost throughout.
V.P.S .
. (l) [1962] Supp. 1 S.C.R. 913.
(2) [1964] 1~ S.T.C. 857.
(J) I.LR (1967] Vol. 1. Punj. & Har. 155.
Petition dismissed.