LexSHRI M. P. SINGH, DY. TRANSPORT COMMISSIONER, GWALIOR versus ANAND TRANSPORT CO. (P) LTD. ETC.
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984 A SHRI M. P. SINGH, DY. TRANSPORT COMMISSIONER, B c D , G H M.P., GWALIOR v. ANAND TRANSPORT CO. (P) LTD. ETC. July 29, 1971 (K. S. HEGDE AND A. N. GROVER, JJ.] Madhya Pradesh Motor Vehicles (Taxation of Passengers) Act, 1959- Section 1-Return filed accepted as correct-No order quantifying a1no1uit of lax necessary before issuing demand notice. Under the Madhya Prade•h Motor Vehicles (Taxation of Passengers) Act, 1939, where returns have been accepted as correct nothing more need be done except to recover the tax due which has not been paid and no assessment order need be passed in view of the express language of s. 7. It ii only when the returns have not been submitted or when returns sutJ.. mitted are found to be incorrect and incomplete that the tax officer ha.." to make an enquiry and determine the sum payable by the operator by way of tu. Similarly if there bas been escapement of tax, proceedinp have to be taken under s. 8 and an order has to be made after an enquiry. The position would be the same if penalty is soueht to be levied under s. 9. [986F-H; 987 A] CivIL APPELLATE JURISDICTION: Civil Appeals Nos. 1449 IB 1454 of 1967. Appeals by special leave from the judgments and orders dated December 15, 1966 of the Madhya Pradesh High Court ill Misc. Petitions Nos. 303 of 1966 etc. I. N. Shroff, for the appellants (in all the appeals). M. N. Phadke, K. L. Hathi and P. C. Kapur, for the respoo- dents (in C.As. Nos. 1449, 1450 and 1452 of 1967). V. S. Desai, K. L. Hathi and P. C. Kapur, for the respondents (in C.As. Nos. 1453 and 1454 of 1967). The Judgment of the Court was delivered by Grover, J.-All these appea.ls arise out of writ petitions that were filed in the High Court of Madhya Pradesh challenging the notices of demand issued by the Deputy Transport Commissioner for payment of the amount of passenger tax said to be due under the Madhya Pradesh Motor Vehicles (Taxation of Passengers) Act, 1959, hereina.fter referred to as the 'Act'. By a common judgment dated November 8, 1966 the High Court allowed the petitions and quashed the demand notices. The appeals may be divided into two categories. In C. As. 1449 and 1453 of 1967 returns had been duly filed as contemplated by s. 5 of the Act but no tax had been deposited as required by s. 6. Demand M. P. SINGH'· ANAND TRANSPORT (Grol'er, J.) 985 notices were issued in respect of the tax payable pursuant to the A returns some years later. Proceedings were also taken as no payment was made for recovery of the tax as arrears of land revenue. In the other four appeals the returns were never filed but it appears the authorities did take certain proceedings under s. 7 of the Act and in some cases accounts of the respondents were checked and their liability detennined. When demand B notices were sent and recoveries sought to be made the writ peti- tions were filed. The High Court did not go in these matters fully and treated all the petitions as if the facts werl! similar. Section 3 of the Act which is the charging section provides that there shall be levied and paid to the State Government a tax on all passengers carried &y stage carriages at a rate equivalent to I 5 % of the fare inclusive of the tax payable to the operator of a stage carriage. The tax has to be collected by the operator of a stage carriage and paid to the Sta.le Government in accor- dance with the provisions of the Act. Under s. 5 the operator must deliver to the tax officer or to such prescribed officer as may be specified a return in the prescribed fonn and manner either daily or at such intervals as ma.y be prescribed. Section 6 Jays down that the tax payable during any month in accordance with the return submitted under s. 5 shall be paid into a Governmen< treasury by the operator and the receipt evidencing such payment ha.s to be forwarded to the Tax Officer. Sections 8, 9 and 10 arc in the following terms :- "(8) Fares escaping assessment.-lf, for any reason, the whole or any portion of the tax Jeviable under thil Act, for any month has escaped assessment, the Tax Officer may, at any time within, but not beyond, one year from the expiry of that month, a.ssess the tax which has escaped assessment, after issuing a notice to the operator and making such inquiry as the officer may consider necessary. (9) Penalty for non-paymefll 01 tax.-Wherc the whole or any portion of the tax pa.yable to the State Governme
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