The words "during the year" in section 15(1) of the Andhra Pradesh General Sales Tax Act should not be interpreted strictly as "within the year", as such an interpretation would defeat the object and intention of the provision.

CHENNAKESAV REDDI, C. J.

( 1 ) MUCH ado is made again in these cases about the just and reasonable interpretation of the expression "during the year", employed in sub-section (1) of section 15 of the Andhra Pradesh General Sales Tax Act (hereinafter referred to as the "act" ). A Division Bench of this Court in Ramu and Co. v. State of Andhra Pradesh [1970] 43 STC 510 construing the scope of section 15 (1) of the Act held that there was nothing in the language of section 15, which prohibits the assessing authority from making a provisional assessment on the monthly returns submitted in form A-2 as required under rule 17 of the Andhra Pradesh General Sales Tax Rules (hereinafter referred to as the "rules") beyond the assessment year. It was further held that the expression "during the year" in section 15 (1) is not to be understood is "within the year" and if the legislature intended to injunct the assessing authority to complete the provisional assessment within the year, they would have used the words "within the year" instead of the words "during the year". It was further observed that the word "may" employed in sub-section (1) of section 15 gives discretion to the assessing authority to make the provisional assessments within the year and there is no obligation on the part of the assessing authority to complete the assessments within the year. The correctness of this decision was canvassed in Writ Petition Nos. 2729 and 2804 of 1980 before Kuppuswamy, Ag. C. J. (as he then was), and Seetharam Reddy, J. , as contrary to the express language employed in section 15 (1) of the Act. The learned Judges considered it proper to refer the cases for decision to a Full Bench for a more authoritative pronouncement on the question. Therefore, the cases are now placed before us.

( 2 ) TO answer the question, it is necessary to read section 15 of the Act and rule 17 of the Rules. Section 15 reads :"15. Provisional assessment of tax, - (1) The tax payable under this Act for each year may be provisionally assessed in advance during the year in monthly or other prescribed instalments on the basis of estimated or actual turnover of the dealer; and for that purpose a dealer may be required to submit a return or periodical returns of estimated or actual turnover in such manner as may be prescribed. (2) If the assessing authority has reason to believe that the provisional assessment for any period was made on too low a turnover or at too low a rate or on too high a turnover or at too high a rate, he may enhance or reduce, as the case may be, such provisional assessment : Provided that before making an enhancement of the provisional assessment as aforesaid the assessing authority shall, except where such enhancement is based on the turnover finally determined for the preceding year, issue a notice thereof to the dealer and make such inquiry as he considers necessary. (3) The tax provisionally assessed may be levied and collected, either in advance during the year in monthly or other prescribed installments or at any time thereafter in one lump sum. "rule 17 reads : "17. (1) Every dealer whose total turnover in a year exceeds Rs. 1,00,000 shall submit so as to reach the assessing authority on or before the 25th day of every month a return in form A-2 showing the total and net turnover for the preceding month. Along with the return he shall submit a receipt from the Government treasury or a crossed demand draft in favour of the assessing authority for the full amount of tax or taxes payable for the month to which the return relates under section 5, 5-A, 5-B, 6, 6-A, 6-B, or 11 or notified under sub-section (1) of section 9 : Provided that in a case where a dealer intends to pay the tax through a crossed cheque, the cheque should be sent so as to reach the assessing authority on or before the 15th day of the month succeeding the month to which the tax relates. (2) the returns so filed shall, subject to the provisions of sub-rules (3) and (4), be prov

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