Case: Commissioner of Sales Tax, M.P Vs. Filter Company

1. The respondent (assessee) manufactured woollen felt. It was a dealer registered under the Central Sales Tax Act as also the M.P. General Sales Tax Act. Under the provisions of SectionB of the State Act the assessee had asked for an opinion. Thereunder, if any question is raised by a dealer in respect of the rate of tax on any goods, the Commissioner is required to make an order determining that rate and the order passed by the Commissioner is binding on the taxing authorities in all the proceedings under the State Act, except appeals. Pursuant to the assessees request the Commissioner, on, opined that the felt submitted by the assessee, being a woollen fabric, was exempt from tax under the State Act. Accordingly, for the Assessment Years2 to, the assessee was not assessed to sales tax

Court's reasoning:
The Board of Revenue, in second appeal, reversed the finding of the first appellate authority and the High Court upheld its view. The High Court analysed the provisions of Section 19(1) and emphasised that the power of reopening under that provision could be exercised only where an assessment had been made. No assessments for the relevant assessment years having been made, it held that the provisions of Section 19 were inapplicableIt is crystal clear therefrom that it applies only if an assessment has already been made and there has been underassessment or escaped assessment therein. In a case where there has been no assessment, as in the case before us for the assessment years in question, the provisions of Section 19 do not apply and cannot be invoked