Case: The Additional Assistant Commissioner Vs. Firm Jagmohandas Vijaykumar &amp; Others

The Respondents are registered dealers under that Act as well as under the Central Sales Tax Act. The liability of one of the assessees is under the Central Sales Tax Act whereas the liability of the remaining two assessees is under the Madhya Bharat Sales Tax Act. But in either case the governing provisions are Ss. 8 and 10 of the Madhya Bharat Sales Tax Act. In the case of Respondent in C. A. No. 1774/67, we are concerned with the assessment year. He had not submitted the required return but assessment proceedings against him were commenced on, i.e. within five months from the end of the assessment year. In the case of others, they had filed the required returns within time though assessments were not made for several years. The question for consideration before the High Court was whether in view of the fact that there was delay of more than three years in making the assessment, the proceedings started were barred under S. 10 of Madhya Bharat Sales Tax Act.

Reasoning: 4. This Court in Civil Appeal No. 771 of 1966, dated8 (SC) has ruled that once an assessment proceeding has commenced thereafter there can be no. question of any bar of limitation under S. 10 of Madhya Bharat Sales Tax Act. It has further ruled that an assessment proceeding commences either when the assessee submits its return or the department issues Notice calling upon the assessee to submit his return or produce his accounts. In these cases, as seen earlier, the assessment proceedings were commenced within the time prescribed in Section 10 and, therefore, there can be no. question of any escapability of assessment. This Court has also ruled that Section 10 applies only to escaped assessments. The ratio of that decision governs the facts of these cases5. In view of our above conclusion, it is not necessary to consider about the applicability or the effect of SectionA of the Madhya Pradesh General Sales Tax Act 1958 as amended in 1964.