Law: Sales Tax Act, 1990

Section: 36,32

(a) Sales Tax Act (VII of 1990)-----S.36---Show-cause notice---Limitation---Analysis of S 36, Sales Tax Act, 1990---Authority issuing a show-cause notice would have to make out a case in the show-cause notice itself as to under which provision of the Act the case fell and would also have to incorporate the grounds and reasons in the show-cause notice very clearly and explicitly so that it could be ascertained that the show-cause notice fell under S.36(1) or 36(2) of the Sales Tax Act, 1990---Failure on the part of authority issuing show-cause notice in this behalf would render the same invalid and illegal---Principles. Under section 36 of the Sales Tax Act, 1990, two periods of limitation have been provided for issuance of show-cause notice in cases where the tax has not been levied or short-levied. Under subsection (1), the period of limitation is five years and the cases to which this period is applicable are those where the taxpayer has either colluded with somebody for such short payment or had made some deliberate acts or omissions for short payment of the tax. Therefore the State has been given a longer period of limitation i.e. five years so that such a person should not go scot free. Under subsection (2) of section 36, the period of limitation for issuance of show-cause notice is restricted to three years only. Under this subsection, the grounds available for issuance of show-cause notice are inadvertence, error or some misconstruction on the part of the taxpayer, meaning thereby that it was due to some innocent act of the taxpayer that the tax was either not paid or short paid. Therefore, the Legislature restricted its limitation to three years as against those persons who had some mala fide intention and were covered under subsection (1) of section 36 of Sales Tax Act. It is thus evident from the above analysis of the two subsections that the authority who has to issue such a show-cause notice, will have to make out a case in the show-cause notice itself showing under which provision the case falls and it will also have to incorporate the grounds and reasons in his show-cause notice very clearly and explicitly so that it could be ascertained whether…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492