The amendment introduced in section 11-A of the Central Provinces and Berar Sales Tax Act, 1947 (XXI of 1947) by section 6 of the Bombay Sales Tax Laws (Validating Provisions and Amendment) Act, 1959, overruled the Full Bench decision in Bissesar House v. State of Bombay, 60 Bom LR 1395: (AIR 1959 Bom 130), and allowed for the issuance of a notice under section 11(2) of the said Act more than three years after the expiry of the period for which it was proposed to make the assessment.

CHAINANI, C.J. :-

The two questions referred to the Full Bench are:

1. Whether in view of the amendment introduced in section 11-A of the Central Provinces and Berar Sales Tax Act, 1947 (XXI of 1947) by section 6 of the Bombay Sales Tax Laws (Validating Provisions and Amendment) Act, 1959, the Full Bench decision in Bissesar House v. State of Bombay, 60 Bom LR 1395: (AIR 1959 Bom 130), still holds good?

(2) Whether a notice under section 11(2) of the said Act can be issued more than three years after the expiry of the period for which it is proposed to make the assessment?"

2. In order to answer these questions, it is necessary to refer to certain sections of the Central Provinces and Berar Sales Tax Act, 1947 (XXI of 1947), (hereinafter referred to as the Act), Section 4 of the Act is the charging section and it provides that every dealer whose turnover exceeds the limits specified in sub-section (5) shall be liable to pay tax in accordance with the provisions of the Act on all sales effected after the commencement of the Act. Section 8 provides for the registration of dealers. Section 10 requires every dealer who is required to do so by the Commissioner by notice served in the prescribed manner and every registered dealer to furnish returns by such dates and to such authority as may be prescribed. Section 12 provides that before any registered dealer furnishes the returns required by sub-section (1) of section 10, he shall pay into a Government treasury in the prescribed manner the full amount of tax due from him under the Act according to such returns. Then comes section 11, which provides for the assessment of tax due from a dealer, and sub-section (1) of this section says that if the Commissioner is satisfied that the returns furnished by a dealer in respect of any period are correct and complete, he shall assess the dealer on them, Sub-section (2) of section 11 is in the following terms:

"If the Commissioner is not so satisfied he shall serve the dealer with a notice appointing a place and day and directing him -

(i) to appear in person or by an agent entitled to appear in accordance with the provisions of section 11-B;

(ii) to produce evidence or have it produced in support of the returns; or

(iii) to produce or cause to be produced any accounts, registers, cash memoranda or other documents as may be considered necessary by the Commissioner for the purpose."

Sub-section (3) states that after hearing the dealer or his agent and examining the evidence produced in compliance with the requirements of clause (ii) or clause (iii) of sub-section (2) and such further evidence as the Commissioner may require, the Commissioner shall assess him to tax. Sub-section (4) provides for a best judgment assessment in cases where the dealer has riot furnished a return, or having furnished his return, has not complied with the notice issued under sub-section (2) or has not employed proper methods of accounting. Sub-section (5) provides that if the Commissioner is satisfied that any dealer liable to pay tax under the Act in respect of any period has wilfully failed to apply for registration, the Commissioner shall, at any time within three calendar years from the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed in such manner as may be prescribed to assess to the best of his judgment the amount of tax due from the dealer in respect of such period. Under this sub-section the Commissioner can proceed against unregistered dealers within three years from the expiry of period in respect of which the assessment is to be made.

3. Section 11-A, which was inserted in the Act in 1953, provides for the assessment of turnover which has escaped assessment. Sub-section (1) of this section states that if in consequence of any information which has come into his possession, the Commissioner is satisfied that any turnover of a dealer during any period has been under-assessed or has escaped assessment or assessed