STATE OF PUNJAB versus SANT SINGH KANWARJIT SINGH

Citation: [1970] 3 S.C.R. 311 · Decided: 04-12-1969 · Supreme Court of India · Bench: J.C. SHAH · Disposal: Dismissed

Judgment (excerpt)

A 
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D 
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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 there-
on-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, contem-
plate 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 Sales-
tax Act, 1948. The assessee filed returns of the turnover of its 
business for the quarters ending 30th June, 1962 and 30th Sep-
teinber, 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 autho-
rity 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 t

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